Investors expected a potentially drawn-out court battle over a move by social media companies and Elon Musk to break a deal to buy the company, dropping Twitter’s share by more than 5% in pre-market deals on Monday. did.
Musk agreed to buy Twitter for $ 44 billion about three months ago. On Friday, he sought to withdraw a legally binding takeover agreement, claiming that Twitter did not provide the information needed to calculate the number of spam accounts on the platform.
Twitter stock lost one-third of its value Since April 25, when Mr. Musk’s offer to acquire the company was accepted by the company’s board of directors. Since the deal was signed, investors have become increasingly skeptical that the acquisition of mercury by millionaires will take place on agreed terms. Twitter’s share price is trading below $ 54.20 offered by Mr. Musk, well below the highs above $ 70 last year.
Musk has been sparring with Twitter executives for months on his request to get information on how to detect and count spam accounts on the platform. He has been complaining online until he tweeted the Pile of Poo emblem on Twitter’s CEO, Parag Agrawal, in response to a tweet explaining how Twitter detects spam accounts. Experts believe that Mr. Musk’s reasoning is not legally sound and that focusing on fake accounts may be a tactic for negotiating at lower purchase prices.
In May, Musk said at a technical conference in Miami that buying Twitter at a low price was “not out of the question.” Twitter Chairman Bret Taylor tweeted Friday, and the company’s board decided to close the deal “at a price and terms agreed with Mr. Musk” and plans to take legal action against him. Said that.
