Tesla CEO Elon Musk claimed that his $44B deal with Twitter was being rescheduled due to an investigation into bot accounts. Musk reiterated that he is still committed to the purchase.
Elon Musk, SpaceX CEO and Tesla’s Chief Executive Officer, tweeted that the deal for Twitter was “on hold” due to an investigation into fake accounts on Twitter. Musk seems keen to confirm this claim, which is lower than most estimates.
Premarket trading saw Twitter shares drop by over 15% They dropped from $45.08 per Tweet to $38.76 immediately after the announcement.
Musk stated that the acquisition is still his priority.
The SEC is currently investigating Elon Musk’s late disclosure of his large Twitter share last month. He was able to purchase more stock without informing other Twitter shareholders.
The SEC investigates Musk’s late submission of a public form that investors must complete when they purchase more than five per cent of shares in a company. This disclosure informs shareholders of the possibility of large investors seeking to influence or control a company.
Investors who have stakes that exceed the threshold must file an SEC form within ten days. Musk should have declared his stake no later than March 24, not March 24.
Musk purchased stock worth $513 million at $49.97 per shares on March 24. This was a purchase of stock worth between $38.20 and $40.31 per share.
Elon Musk could buy Twitter at a cheaper price than the $44billion that he offered.