Elon Musk says he remains committed to buying Twitter; so what does it mean by pausing the process?

Elon Musk says he’s ‘still committed to acquiring’ Twitterafter confirming that it has temporarily suspended the purchase, agreed for 44,000 million dollars, at least, until the company offers details guaranteeing that fake accounts active on the social network represent barely 5% of users, because the company itself said a few days ago (via Reuters).

While one of Elon Musk’s main changes to Twitter was to end bots and fake accounts on the platform, the mogul it also aimed to make the social network a place where “freedom of expression” prevailed, no matter how controversial user opinions may be. In addition to other important changes. So why did he really stop buying? Musk didn’t give many details about it, but there are a number of reasons why you might have made a decision.

one of them, and the one dismissed knowing the new tweet, it is his regret to have acquired Twitter. Musk has assured that he remains committed to the purchase, so although he is currently suspended, there is every indication that he will continue discussions with investors and banks in order to obtain financing. The Twitter deal also contains a clause that says Musk would have to pay $1 billion if he backs out of the purchase or secures sufficient funding.

Suspension of deal could lead Elon Musk to buy Twitter at a lower price

Lower the purchase price of Twitter This could be another reason why Elon Musk decided to temporarily put the deal on hold. The purchase, remember, was set at $44,000 million, an amount that led the mogul to negotiate with investors and promise some controversial changes to the platform in an effort to make it profitable. Among them, the possibility of downsizing or including payment services on the platform.

However, Elon Musk has spent weeks ensuring his main focus on Twitter is eliminate fake accounts circulating on the platform. While there are no details as to whether Musk had an accurate estimate when he brokered the deal with the company, Twitter assures that in the first quarter of the year they barely accounted for 5% of active and monetizable accounts on the platform.

If it is confirmed that on Twitter less than 5% of accounts are spam, Elon Musk might have a chance to change the terms and correct the price downwards. Make, therefore, that the acquisition of Twitter is cheaper.

Tesla shares would also have something to do

The temporary suspension of the deal could also be a strategy to prevent Tesla shares from suffering. musk too used the shares of its electric mobility company as collateral to obtain sufficient financing and thus be able to acquire the platform. Therefore, not having enough support could mean a major millionaire loss for Tesla.

Indeed, and according to Bloombergthe South African continues to discuss with investors to obtain more financing and therefore do without Tesla’s margin loan.