- Twitter dropped as much as 25% in Friday's premarket after Elon Musk said his deal to buy the company was on hold.
- Musk tweeted the deal was paused pending more details about fake accounts on the social media website.
- Twitter has consistently traded below the buyout price, reflecting concerns something may go wrong with the deal.
- For more stories go to www.BusinessInsider.co.za.
Twitter stock dropped as much as 25% in premarket trading on Friday after Elon Musk announced that his deal to buy the social media company was on hold.
"Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users," Musk tweeted on Friday.
The Tesla CEO attached a Reuters article that said Twitter estimated that spam or fake accounts made up less than 5% of its monetisable daily users in the first three months of the year.
Twitter stock was down 18.19% to $37.01 as of 6.11am ET in premarket trading. The company closed at $45.08 the previous day.
Shares in the social media company jumped in early April after Musk announced he planned to buy the company. The two parties later agreed a deal worth $44 billion.
However, the stock has consistently traded at a discount to the agreed price of $54.20 a share, reflecting concerns that something may go wrong.
Tesla stock meanwhile, rose 4.46% to $760.50.