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Twitter Stock Falls After Elon Musk Says Deal Is on Hold

Elon Musk said his deal to buy Twitter was on hold, raising questions about the takeover.



Photo:

David Paul Morris/Bloomberg News

Shares of

Twitter Inc.


TWTR -8.67%

fell during morning trading after

Elon Musk

said his deal to buy the social-media company was on hold.

Shares of Twitter shed 10% to $40.43, on pace to close at the lowest level since early April, just before Mr. Musk disclosed a surprise 9% stake in the company.

Mr. Musk, the chief executive of

Tesla Inc.


TSLA 5.85%

, last month struck a deal to buy Twitter and take it private, capping a topsy-turvy month for the social-media company and its stock. But on Friday morning, he tweeted, “Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users.” He linked to a May 2 Reuters report about a recent Twitter securities filing with those statistics.

Later Friday morning, he added on Twitter that he was “still committed” to the acquisition. That helped Twitter trim its losses after earlier falling more than 20% in the premarket session.

Still, Twitter’s shares are now trading about 25% below the deal price of $54.20 a share. Shares of the company had already been falling recently, reflecting investor worries about the outlook for the deal.

But Twitter, like many technology stocks, has also been hit hard lately by a broad market selloff of riskier assets. Tesla shares have also been pummeled. Yet Tesla shares jumped 4.7% on the news Friday.

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

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

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Twitter Stock Falls After Elon Musk Says Deal Is on Hold Source link Twitter Stock Falls After Elon Musk Says Deal Is on Hold

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