Elon Musk suspended the purchase of Twitter and the company’s shares on Wall Street sank

South African businessman Elon Musk has temporarily suspended the purchase of Twitter and sYour decision caused parts to fall by up to 20% of the company on Wall Street.

“The Twitter deal has temporarily suspended pending details to support the calculation that fake/spam accounts have less than 5% of users,” the entrepreneur said.

The news of Twitter’s purchase suspension generated that stocks fell nearly 20%at approximately $ 36.5, in continued trading prior to the opening of Wall Street, known as premarket.

Musk announced that last month there was a 9% stake on the board of the social network and tried to buy the rest of the company.

On March 28, Twitter’s board of directors Musk Accepts $ 44 Billion Takeover Offerat the rate of 54.20 dollars per share, although the operation is not yet closed and must be approved by regulators.

In a tweet, billionaire automaker owner Tesla posted a link to an article published by Reuters on May 2 that mentioned a financial report on Twitter that it is estimated that fake or spam accounts cost less than 5% of “profitable daily active users” in the first quarter of the year.

However, the company also warns that the estimate is based on a sample of accounts and that “the actual number of fake or spam accounts This may be higher than estimated.

“The deal is temporarily on hold on Twitter awaiting details to support the calculation that spam/fake accounts effectively represent less than 5% of users, ” Musk said, expressing his skepticism about this figure.

At the time of the company’s purchase announcement, Musk provided search indications a less interventionist approach to moderating speech, Contrary to what Twitter has shown so far, where it has doubled its efforts to combat hate messages.

The announcement will come a day later the company said it was stopping hiring and seeks to reduce costs while dealing with disruptions in the digital advertising market due to the global economic crisis and war in Ukraine. Across the tech sector, companies are cutting staff and spending or slowing down hiring, according to The Wall Street Journal.

As quoted by the media, some investors saw the pause in the acquisition as a possible signal that the deal may not proceed.

Musk’s tweet also came when many tech stocks are falling on Wall Street. Twitter’s share price remained below Musk’s offer price as investors questioned whether the deal could be redone or not.

Musk made rooting fake accounts and user transparency central to his purchase of Twitter, for which he offered $ 44 billion last month.

While Twitter shares have fallen, on the other hand Tesla’s value has grown 5%. Musk suggested using the car company to help fund the purchase deal.