Twitter Stock Tumbles Premarket After Elon Musk Says Deal Is on Hold

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Shares of Twitter shed 11% before the opening bell, on pace to open at their lowest level since March

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Mr. Musk, the chief executive of Tesla Inc,

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, 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.

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Still, at its premarket price, Twitter’s shares are now trading about 26% 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 7.1% on the news Friday before the opening bell.

Write to Caitlin McCabe at [email protected]

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Credit: www.Businesshala.com /

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