Elon Musk put his $44 billion acquisition of Twitter Inc on hold on Friday, citing a lack of information on spam and fraudulent accounts. Elon Musk tweeted, “Twitter transaction on hold temporarily for details supporting computation that spam/fake accounts do comprise fewer than 5% of users.” In premarket trade, Facebook’s stock dropped 20%.
An inquiry to Twitter for comment was not immediately returned. Earlier this month, the microblogging platform calculated that fraudulent or spam accounts made up less than 5% of its monetizable daily active users during the first quarter.
It also said that until the transaction with Musk is finalized, it faces many risks, including advertisers continuing to spend money on Twitter.
Musk, the world’s wealthiest man and CEO of Tesla Inc, has previously said that removing “spambots” from the platform would be one of his top goals.