Elon Musk says deal to buy Twitter ‘temporarily on hold’

News

Tesla CEO Elon Musk attends the opening of the Tesla factory Berlin Brandenburg in Gruenheide, Germany, Tuesday, March 22, 2022. Shares of Tesla and Twitter have tumbled this week as investors deal with the fallout and potential legal issues surrounding Tesla CEO Musk and his $44 billion bid to buy the social media platform. Of the two, Musk’s electric vehicle company has fared worse, with its stock down almost 16% so far this week to $728. (Patrick Pleul/Pool via AP, File)

LONDON (AP) — Elon Musk said Friday that his planned $44 billion purchase of Twitter is “temporarily on hold” pending details on spam and fake accounts on the social media platform.

The announcement that the Tesla billionaire tweeted is another twist amid signs of internal turmoil over his planned buyout of Twitter, including that the social media company fired two of its top managers Thursday.

It wasn’t clear whether the fake account issue could scuttle the Twitter deal. Stock in both Twitter and Tesla swung sharply in opposite directions, with Twitter’s stock tumbling 18% and Tesla, which Musk had proposed using to help fund the Twitter deal, jumped 5%.

Investors have had to weigh legal troubles for Musk, as well as the possibility that acquiring Twitter could be a distraction from running the world’s most valuable automaker.

Twitter said Thursday that the company is pausing most hiring and except for business critical roles. In addition, it said in a statement, “we are pulling back on non-labor costs to ensure we are being responsible and efficient.”

In a memo sent to employees and confirmed by Twitter, CEO Parag Agrawal said the company has not hit growth and revenue milestones after the company began to invest “aggressively” to expand its user base and revenue.

Copyright 2022 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

BR - Article Bin 1

More Local News
BestReviews

Blank Video Test

LAPD investigation car-to-car shooting in Exposition Park

Local officials react to tragedy in Texas

Earthquake researchers hope artificial intelligence could lead to prediction breakthrough

At least 19 children, 2 adults killed in Texas elementary school shooting

At least 18 children, 1 teacher killed in Texas elementary school shooting, officials say

'Time to act': Biden speaks after deadly Texas school shooting