Elon Musk tweeted on Friday that his $44-billion cash deal for Twitter Inc (TWTR.N) was "temporarily on hold" while he waits for the social media company to provide data on the proportion of its fake accounts, Trend reports citing Reuters.
Twitter shares initially fell more than 20% in premarket trading, but after Musk, the chief executive of electric car market Tesla Inc (TSLA.O), sent a second tweet saying he remained committed to the deal, they regained some ground.
The shares were down 9.6% to $40.71 in trading on Friday, a steep discount to the $54.20 per share acquisition price.
Musk, the world's richest person, decided to waive due diligence when he agreed to buy Twitter on April 25, in an effort to get the San Francisco-based company to accept his "best and final offer." This could make it harder for him to argue that Twitter somehow misled him.
Since Musk inked his deal to acquire Twitter, technology stocks have plunged amid investor concerns over inflation and a potential economic slowdown.