Twitter shares Inc.
fell in afternoon trading on Friday after Elon Musk said his deal to buy the social media company was “on hold.”
Twitter shares fell 10% to $40.59, on course to close at their lowest level since early April, just before Mr. Musk disclosed a surprise 9% stake in the company.
Mr. Musk, the CEO of Tesla Inc..
, last month reached a deal to buy Twitter and take it private, ending an upside-down month for the social media company and its stock. But on Friday morning, he tweeted: “The Twitter agreement is temporarily suspended pending details supporting the calculation that spam/fake accounts indeed represent less than 5% of users. He linked to a May 2 Reuters report on a recent Twitter headlines filing with these statistics.
Shares of Twitter fell 26% in premarket trading on Friday to $33.51, according to Dow Jones Market Data.
Later Friday morning, Mr. Musk added on Twitter that he was “still committed” to the acquisition. This helped Twitter cut its losses.
Still, Twitter shares are now trading around 25% below the $54.20 per share trading price. Shares of the company had already fallen recently, reflecting investor concerns over the deal’s prospects. Like many tech stocks, Twitter has also been hit hard lately by a broad market sell-off in riskier assets.
Tesla shares jumped 5.5% on Friday.
Tesla shares have fallen since Twitter accepted Mr Musk’s takeover offer. Mr. Musk plans to borrow against his stake in Tesla to fund the deal. Tesla investors are also worried that owning Twitter could distract Mr. Musk from running Tesla.
Write to Caitlin McCabe at [email protected]
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