Last month, Tesla’s owner Elon Musk created a lot of ripples when he announced the purchase of the microblogging platform Twitter. Ever since then, there have different theories about whether the move will be good or bad for Twitter and what changes will come to Twitter post-acquisition. Now in a series of latest developments, Musk has claimed that the deal to acquire Twitter is temporarily put on hold.

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Musk has clarified that the deal has been halted till it is confirmed whether spam or fake accounts represent less than 5% of Twitter’s total userbase. “Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users (sic),” Musk tweeted.

Twitter had earlier given an estimate stating that false/spam accounts represent fewer than 5% of its monetizable daily active users during the first quarter. The social media company had 229 million users who were served advertising in the 1st quarter (January-March). The disclosure came after Musk revealed his intentions of removing spam bots from the platform.

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Shares of Twitter fell 17% in premarket trading. The shares tumbled as investors deal with the fallout and potential legal issues surrounding Tesla CEO Elon Musk and his 44 billion dollars bid to buy the social media website. Twitter also claims that it is facing several risks till the deal with Musk gets closed. These include whether advertisers would continue to spend on the platform and other uncertainties.

Meanwhile, Musk’s deal even if it is successful will take months to materialize as he needs to secure his finances. Although he has raised loans it will still be a long way to go. This is the reason he has been speaking about reducing the operational costs of Twitter and has tweeted about eliminating the salaries of Twitter’s board of directors which could lead to savings of about 3 million dollars.

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