Agencies-Gaza post
Twitter shares fall after Musk withdraws takeover bid
The social media company plans to sue the billionaire as the takeover deal falls through
Shares in social media giant Twitter plunged into premarket trading Monday after Elon Musk withdrew from his $44 billion bid to buy the company.
The company’s shares fell almost 7% to $34.40 per share, trading well below the $54.20 per share offer Musk made in April. Twitter is on track to shed nearly $2 billion in market value from last week’s close.
On Friday, Musk’s attorney told Twitter’s board of directors that the billionaire wanted to call off the acquisition. He claimed that Twitter had misrepresented user data, with the number of spam bots on the platform being much higher than the company disclosed.
Twitter responded by saying it gave Musk the information he needed to judge his claim that spam accounts only make up 5% of monetizable daily active users. The company has claimed that its estimates were correct.
Meanwhile, Twitter chairman Bret Taylor said the company would take legal action to complete the transaction “at the prices and terms agreed by Mr. Musk.” According to Bloomberg sources, the company has fired merger-law heavyweights Wachtell, Lipton, Rosen & Katz and intends to file lawsuits earlier this week.
In response, the Tesla CEO posted a meme late Sunday with pictures of himself laughing at Twitter’s preparations to sue him.
