Investors are turning away from Twitter after US billionaire Elon Musk is abandoning a takeover of the social networking site. Shares fell more than 5% in premarket trading. As a result, the company is on track to lose 1.39 billion euros in market value.
–
A point of discussion is the number of fake ‘bot’ accounts on the social platform. According to Musk, that share would be much higher than Twitter officially communicates.
–
The CEO claims that the company did not provide him with sufficient information about user numbers. He also uses that as one of the arguments to blow up the deal. However, several experts say his stance is an exaggeration and it won’t be strong enough to win in court.
–
$44 billion contract
In April, Twitter and Musk announced they had signed a deal to take the company off the stock market for $44 billion. Musk promised to collect capital to buy all the shares. There are only a limited number of ways for both parties to get out of the deal. Depending on the situation, one has to pay a sum of one billion dollars to the other.
–
Musk argues in official stock exchange documents that Twitter must pay him that billion because the company has not kept the terms of the deal. Twitter itself wants to take Musk to court to let the takeover go through. The company has been trading well below the $54.2 per share that Musk had offered for some time.
–
Meanwhile, Tesla, the maker of electric cars from Musk, is getting a boost in premarket trading. It is trading about 1 percent higher.
–
Also see: Deal with Twitter jumps: “Musk wants to shield empire”
–
Free unlimited access to Showbytes? Which can!
Log in or create an account and never miss a thing from the stars.
–
–
:strip_icc():format(jpeg)/kly-media-production/medias/3432220/original/050867700_1618724332-hush-naidoo-yo01Z-9HQAw-unsplash.jpg?resize=150%2C150&ssl=1 "The Right Way to Stay Healthy With Health Apps")