Musk puts Twitter deal 'on hold' until fake user estimates resolved

Elon Musk has put his deal to buy Twitter on hold until he gets more information about fake accounts on the platform.

Musk puts Twitter deal 'on hold' until fake user estimates resolved

Twitter said that fake and spam accounts represent fewer than 5% of the users on its platform, in a filing earlier this month.

In a tweet, the Tesla and SpaceX CEO announced that he was pausing the takeover until he could see the reasoning for that calculation.

Twitter's stock plunged on Friday after the announcement, but Musk later tweeted: "Still committed to acquisition." 

In a statement, Twitter CEO Parag Agrawal said he expects the deal to close but added that the company needs "to be prepared for all scenarios."

According to a news report, the social network has frozen hiring and is cutting costs and restructuring leadership as it tries to prepare for the takeover.

The move has led to speculation that this is Musk's strategy to get out of the deal as he was financing a portion with sales of Tesla stock which put pressure on the auto stock's share price. 

Others think that this is Musk's way to negotiate a better price for the deal. There is a $1bn termination fee if Musk does back out of the deal, though it is unclear whether that fee holds given this disclosure. 

(Photo Credit: Sean Zanni/Patrick McMullan via Getty Images)

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