San Francisco –
Results Elon Musk cancel the purchase Twitter It could end badly for the social media company. While there is a chance that Twitter will win against Elon in court, they will probably suffer.
Twitter’s share price plunged 11% as soon as Elon Musk announced the cancellation of the acquisition. Well, a court battle has the potential to continue to suppress Twitter shares in the long term until the company’s valuation or value declines.
“For Twitter, this mess is a nightmare scenario and will see CEO Parag Agrawal and his colleagues climb Mount Everest to navigate the myriad of challenges ahead regarding employee morale, advertising challenges, credibility regarding fake accounts and other issues,” said Daniel Ives. , industry analyst from Wedbush.
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Elon’s legal team argued that Twitter repeatedly failed to provide accurate information about the number of fake accounts on its site. Meanwhile, Twitter wants Elon to continue the acquisition process at a price of USD 54.2 per share.
There is a possibility that Twitter can win or negotiate a price reduction. Twitter could also be fined the $1 billion it actually agreed to Elon Musk if the purchase process fails.
“Nevertheless, this will be a long and rough battle, where the issue of fake accounts or bots will be observed by all parties and present a dark cloud for Twitter in the short term,” Ives was quoted as saying. detikINET from the New York Post.
“These legal issues could last until 2023 and during that time, Twitter as a public company will have to navigate its day-to-day operations with many challenges ahead with its shareholders,” he added.
Next page, Elon Musk feels above the law>>>
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