Twitter Stock Falls after Musk Abandons Takeover Plan; Billionaire Reacts

Twitter stock fell Monday after Tesla chief Elon Musk ditched a $44 billion offer to acquire the social media giant.

The system stock dropped 5.46 % on Wall Avenue, to $34.80 by close to 7:05 am (11:05 GMT). It experienced lost 5.10 per cent before the weekend.

Musk on Friday pulled the plug on the offer, accusing the business of “deceptive” statements about the range of phony accounts, in accordance to a letter from his attorneys, a duplicate of which was filed with the Securities and Exchange Fee.

Musk’s work to terminate the offer that he inked in April sets the stage for an epic courtroom struggle more than a billion-dollar breakup price.

The social network states the amount of phony accounts is considerably less than 5 p.c, a determine challenged by the multi-billionaire who believes the quantity to be significantly higher.

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In accordance to numerous US media, Twitter has hired popular New York law organization Wachtell, Lipton, Rosen & Katz. Twitter declined to comment to AFP.

Just after the news broke, Musk tweeted: “They explained I couldn’t purchase Twitter. Then they would not disclose bot data. Now they want to force me to obtain Twitter in court. Now they have to disclose bot information in court,” accompanied by pics of him laughing.

For analyst Dan Ives at Wedbush Securities, “this is a ‘code red’ scenario for Twitter and its Board as now the company will go head to head towards Musk in a Game of Thrones courtroom struggle.”

“We see no other bidders rising at this time even though authorized proceedings engage in out in the courts.”

Source: AFP