Twitter is preparing to sue Elon Musk in Delaware after the billionaire said that he was abandoning his $44-billion bid for the social media company
slid more than 9 per cent in the first day of trading after billionaire Elon Musk said that he was abandoning his $44-billion bid for the company and the social media platform vowed to challenge Musk in court to uphold the agreement.
Twitter has said for years in regulatory filings that it believes about 5 per cent of the accounts on the platform are fake. But on Monday Musk continued to taunt the company, using Twitter, over what he has described as a lack of data. In addition, Musk is also alleging that Twitter broke the acquisition agreement when it fired two top managers and laid off a third of its talent-acquisition team.
The sell-off in Twitter shares pushed the share price below $34, far from the $54.20 that Musk agreed to pay for the company. That suggests Wall Street has very serious doubts that the deal will go forward.Morningstar analyst Ali Mogharabi noted that Twitter has described its estimate of fake and spam accounts for years in regulatory filings while explicitly noting that the number might not be accurate given the use of data samples and interpretation.
Tech industry analysts say Musk’s interlude leaves behind a more vulnerable company with demoralized employees.
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