Twitter Stock Falls After Elon Musk Says Deal Is on Hold

Elon Musk says his deal to buy Twitter is on hold, raising questions about a takeover.


Photo:

David Paul Morris / Bloomberg News

Twitter’s share Inc.

TWTR -9.35%

fell in morning trading after Elon Musk said his deal to buy the social media company was stalling.

Shares of Twitter fell 10% to $40.43, on pace to close at its lowest level since early April, just before Musk unexpectedly revealed a 9% stake in the company.

Mr. Musk, CEO of Tesla Inc.

TSLA 6.22%

, last month reached an agreement to buy Twitter and make it private, limiting a volatile month for the social media company and its stock. But on Friday morning, he tweeted, “Twitter temporarily resolves withholding pending details supporting calculations that spam/fake accounts actually represent less than 5% of users .” He linked a May 2 Reuters report to a recent Twitter stock profile with those stats.

Late Friday morning, he added on Twitter that he was “remaining committed” to the acquisition. That helped Twitter cut its losses after falling more than 20% earlier in the pre-market session.

However, Twitter’s stock is currently trading about 25% below its trading price of $54.20 per share. The company’s shares have fallen recently, reflecting investor anxiety about the prospect of the deal.

But Twitter, like many tech stocks, has also been hit hard recently by a widespread market sell-off in riskier assets. Tesla stock was also hit hard. However, Tesla shares were up 4.7% on Friday.

Elon Musk has cultivated close ties with Beijing to build Tesla’s business in China. Now that he’s buying Twitter and focusing on free speech, the WSJ looks at how China has used the social media platform to promote its views and why that has raised concerns. Photo illustration: Sharon Shi

Write to Caitlin McCabe at caitlin.mccabe@wsj.com

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https://www.wsj.com/articles/twitter-stock-tumbles-premarket-after-elon-musk-says-deal-is-on-hold-11652445126?mod=rss_markets_main Twitter Stock Falls After Elon Musk Says Deal Is on Hold

Edmund DeMarche

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