Winning Bizness Desk
Mumbai. Elon Musk said that his $44 billion deal to acquire Twitter has been put on hold. The billionaire Tesla chief cited pending details to support the microblogging site's claim that spam or fake accounts were less than 5 per cent of its total user base. Notably, a few days ago, Elon Musk, the world's richest man had made a deal to buy Twitter for $ 44 billion. But before the deal was finalized, Musk tweeted that the deal has been put on hold for some time. He says that the exact calculation details of whether spam or fake accounts are really less than 5% on Twitter have not been revealed yet.
The company also said that this is only an estimate and the number of spam accounts could be higher. Twitter shares fell more than 20% in the pre-market after the deal hold information surfaced. Twitter said, 'We have done an internal review of the sample of the account. It estimated the number of spam accounts to account for less than 5% of mDAUs during the first quarter of 2022. Our estimate of spam accounts does not accurately reflect the actual number of such accounts. Its number may even be higher than our estimate.
What was the deal ?
Earlier on April 14, Elon Musk offered to buy Twitter for $43 billion. Musk had said, "I am offering to buy a 100% stake at $54.20 per share at a 54% premium to the price the day before I started investing in Twitter." This offer is my best and last offer and if it is not accepted, I will need to reconsider my position as a shareholder. Musk owns a 9.2% stake in Twitter.
Where will Musk raise money for this deal?
Musk said in a new filing to the US Securities and Exchange Commission last week that the funding would be a mix of debt and cash. Investment bank Morgan Stanley and other lenders will provide $13 billion in group debt financing and a $12.5 billion loan against Tesla stock. Will raise $ 21 billion from his pocket. In such a situation, Musk had presented a plan to raise a total of $ 46.5 billion.