Twitter stock dropped 4% in pre-market trading on Friday after the Washington Post reported Elon Musk’s $44 billion deal to buy the social media company is “in serious jeopardy.”
The Post said Musk’s team has pulled back from certain discussions about the purchase and that his team has decided it is unable to verify Twitter’s data on how many spam accounts are present on the platform.
The company’s shares had fallen 4.07% to $37.21 as of 5.15 a.m. ET in pre-market trading. Normal US trading hours begin at 9.30 a.m.
The Washington Post reported on Friday that Musk’s team has raised concerns about the huge amount of data Twitter has provided. The Post cited a person familiar with the matter who said Musk’s team do not think they have enough information to judge Twitter’s business prospects.
A spokesperson for Twitter said they have no further comment beyond one released in June: “Twitter has and will continue to cooperatively share information with Mr. Musk to consummate the transaction in accordance with the terms of the merger agreement.”
Some analysts have suggested Musk could be looking for a way out of the deal given the huge slide in tech stocks over the last few months. Twitter’s market cap is now around $30 billion, well below the price of the deal.