Share of Twitter Inc.
fell in midday trading Friday after Elon Musk said his deal to buy the social-media company was on hold.
Shares of Twitter shed 6.9% to $41.99, 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†
, 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.
Twitter shares fell as much as 26% in premarket trading Friday, to $33.51, according to Dow Jones Market Data.
Later Friday morning, Mr. Musk added on Twitter that he was “still committed” to the acquisition. That helped Twitter trim its losses.
Still, Twitter’s shares are now trading about 23% 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. Like many technology stocks, Twitter has also been hit hard lately by a broad market selloff of riskier assets.
Tesla shares jumped 5.8% in midday trading Friday.
Tesla shares have slipped since Twitter accepted Musk’s buyout offer. mr. Musk plans to borrow against his Tesla stake to finance the deal. Tesla investors also worry that owning Twitter could distract Musk from running Tesla.
Write to Caitlin McCabe at [email protected]
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