Twitter shares plunge after Musk abandons takeover plan

This illustration photo, taken July 8, 2022, shows Elon Musk’s Twitter page displayed on a smartphone screen with the Twitter logos in the background in Los Angeles. – Elon Musk terminated his deal to buy Twitter on July 8, 2022, accusing the company of “misleading” claims about the number of fake accounts, regulatory reports showed. (Photo by Chris DELMASS/AFP)

NEW YORK, USA (AFP) — Twitter shares tumbled on Monday after Tesla chief Elon Musk pulled out of a $44 billion deal to buy the social media giant.

Shares of the platform fell 5.46% on Wall Street to $34.80 at around 7:05 am (1105 GMT). It lost 5.10% before the weekend.

Musk closed the deal on Friday, accusing the company of “misleading” claims about the number of fake accounts, according to a letter from his lawyers, a copy of which was filed with the Securities and Exchange Commission.

Musk’s attempts to terminate the deal he signed in April are setting the stage for a huge legal battle over a billion-dollar divorce fee.

The social network reports that the number of fake accounts is less than five percent, and the multibillionaire disputes this figure, believing that the number is much higher.

Twitter has hired prominent New York law firm Wachtell, Lipton, Rosen & Katz, according to a number of US media reports. Twitter declined to comment to AFP.

Following the news, Musk tweeted, “They said I can’t buy Twitter. Then they would not disclose information about the bots. Now they want to force me to buy Twitter in court. Now they have to reveal information about the bots in court, ”accompanying him with photos of him laughing.

According to Wedbush Securities analyst Dan Ives, “This is a ‘red situation’ for Twitter and its board of directors as the company now comes face to face with Musk in a Game of Thrones lawsuit.”

“At this time, we are not seeing other bidders while the litigation plays out in the courts.”

© Agence France-Presse