Twitter shares take a tumble as Elon Musk’s takeover u-turn sets in
Shares continue to tumble for Twitter as the Silicon Valley titan feels the hangover of Elon Musk’s takeover u-turn this weekend.
The stock dropped over seven per cent in early morning trading on the Nasdaq after the eccentric billionaire called off his $44bn (£37bn) purchase of the social media platform.
He accused the company of breaching the terms of the agreement and making “false and misleading representations”, especially regarding bots and fake accounts.
In true Musk style, he took to Twitter to mock the potential failure of the deal, with images of his own laughing face.
The meme mocked the doubts about his takeover, and the idea that Twitter would now have to disclose its true bot count to the courts.
Twitter chairman Bret Taylor said at the weekend that the firm’s board was “committed to closing the transaction” agreed upon with the the entrepreneur and plans “to pursue legal action to enforce the merger agreement”, which could force Musk to move forward with his takeover at $54.20 per share.
Under the agreement terms, Musk would need to pay $1bn to break off the contract.
People familiar with the matter told Bloomberg that Twitter is expected to file a lawsuit in Delaware as soon as today, and have called in law firm Watchell, Lipton Rosen & Katz to help it with its battle.
Meanwhile, The Daily Mail reported that Musk has hired Emanual Urquhart & Sullivan LLP to back him. The firm is currently representing him in lawsuit surrounding his failed attempt to bring Tesla public.
Twitter’s shares have dipped 13 per cent in the year to date amid a wider tech sell-off in the market.