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Elon Musk Puts Twitter Take Over on Hold, Twitter Shares Tank
The landmark deal that would see takeover and make it has hit a stumbling block as Musk wants to verify the amount of fake .

The landmark deal that would see Elon Musk takeover Twitter and make it private has hit a stumbling block as Musk wants to verify the amount of fake accounts.

Tesla (TSLA) Elon Musk said that his $42 billion takeover of media giant Twitter (TWTR) has been put on hold till it is verified that or fake accounts represent less than 5% of the total users.

  • Twitter estimates that less than 5% of the accounts on the are spam or fake, according to a SEC filing. Musk claimed in that he wanted to authenticate every Twitter user.
  • Twitter’s share price were over 17% at $37.2 in pre-market trading, while Tesla were up over 5% at $769.27 in pre-market trading.
  • The merger agreement, on page 30 of the filing, states that Musk will have to pay $1 billion in the form of a termination fee if the takeover through.
  • On Thursday, Bloomberg reported that Musk is seeking new funding for the Twitter takeover, as he looks to scrap previous plans to take a margin loan against Tesla stock.

UPDATE (May 13, 10:50 UTC): Adds about termination fee and Musk’s pursuit of new funding in fourth and fifth bullet. Updates headline and share price.



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