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Twitter shares plunge after Elon Musk terminates $44 billion deal


In this illustration, Elon Musk’s Twitter account is seen on a smartphone screen and the Twitter logo in the background.

Pavlo Gonchar | Lightrocket | beautiful pictures

Twitter Stocks fell sharply in early pre-market trading on Monday after Elon Musk say he’s trying put an end to his $44 billion takeover of the company.

Shares of the company fell nearly 9% in US money markets before paring some losses to trade 7% lower. Tesla Meanwhile, stocks are up about 1% in pre-market trading.

On Friday, Musk’s attorney informed Twitter’s board that he wanted to rescind the deal. Billionaires have taken issue with the quantity bots and fake accounts on Twitter and said the company was dishonest about the authenticity of activity on the service.

Twitter, on the other hand, said it gave Musk the information he needed to evaluate his claim that spam accounts represent only 5% of monetized daily active users, including the called “firehose”, an unfiltered real-time stream. of daily tweets.

Bret Taylor, Twitter’s chairman of the board, said the company will pursue legal action in Delaware Premier Court to enforce the agreement.

Musk responded on Monday by posting a meme mocking Twitter management over the deal’s failure. It featured a smiling Musk along with the words claiming the company was trying to “force” him to buy it in court.

A Twitter spokesperson declined to comment on the meme.

Musk is one of Twitter’s most popular users, with over 100 million followers. He has used the social media site for everything from corporate communications for his various companies to dam platform previously he wanted to buy back.

Richard Windsor, founder of research firm Radio Free Mobile, said Musk’s “desire to renegotiate the price of Twitter” was most likely the reason he pulled out of the deal.

Although not a shareholder of Twitter, Windsor said that, if he were a shareholder, he would sell now.

“There is still a gap between fundamentals and stock prices,” Windsor told CNBC on “Squawk Box Europe” on Monday.

“If you look at some of the places the tech sector has gone in the last few months, you could put Twitter’s valuation somewhere in the $13 range. [billion] to $15 billion, about 50% less even at today’s stock price. “



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