Twitter stock plunges after Musk deal is at risk

NEW YORK, NEW YORK – MAY 02: Elon Musk attends the Met Gala 2022 In America: An Anthology of Fashion at the Metropolitan Museum of Art on May 2, 2022 in New York City. (Photo by Theo Vargo/WireImage)

Theo Vargo | Wire image | Getty Images

Stock Twitter fell about 4% after markets closed on Thursday following a report from Washington Post This suggests that billionaire Elon Musk’s deal to buy the company is in jeopardy.

The deal was already in undefined territory, according to Musk, after he demanded more information about the percentage of spam accounts on the platform. But The Post, citing an unnamed source, said that Musk’s team has stopped participating in some discussions about financing the $44 billion deal. Musk’s team determined they couldn’t verify the Twitter spam account data, and now they’re ready to “change direction” soon, the Post said, citing a source.

Musk can’t just pay a billion dollars to break up and leave. Twitter may try to force Musk to stick to the original terms, saying his reasons for pulling out are unrelated to his core business.

Earlier Thursday, Twitter held a virtual briefing with reporters to explain how it determines which of the accounts on its platform are bots or spam accounts. The company said trained employees use internal data and signals to come up with a figure that less than 5% of its monetized daily active users (mDAUs) each quarter are spam accounts.

A Twitter spokesperson pointed to an earlier statement that the company “has and will continue to share information with Mr. Musk to complete the transaction in accordance with the terms of the merger agreement. We believe that this agreement is in the interests of all shareholders.” We intend to close the deal and enforce the merger agreement at the agreed price and terms.”

Musk did not immediately respond to a request for comment on the report.

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