Musk puts $44 bln Twitter deal ‘temporarily on hold’, shares slide

Euractiv | May 13, 2022 at 5:15 PM
  • Elon Musk tweeted that his $44-billion deal for Twitter Inc was “temporarily on hold” on Friday while he waits for data on the proportion of its fake accounts, sending shares in the social media platform plunging.
  • The spread between the offer price and the value of Twitter shares had widened in recent days, implying less than a 50% chance of completion, as investors speculated that the downturn would prompt Musk to walk or seek a lower price.
  • Musk is contractually obligated to pay Twitter a $1 billion break-up fee if he does not complete the deal, and the language in the deal contract appears to cap any damages that Twitter can seek from Musk to that level.