Twitter’s share price plummeted on Monday after the news that the deal to takeover Elon Musk was terminated. This is the last and son the army of lawyers still blames the network social for not providing sufficiently comprehensive information regarding the proportion of fake accounts and spamming accounts. As part of this agreement, Elon Musk was to buy Twitter for $54.20 per share. In the following weeks, due to the controversy that even the entrepreneur himself unfolded on Twitter, the network’s share price social soon dropped to the $25-$40 area to stay there better. It remains to be seen if the announcements from the end of last week are holding Twitter’s stock price lower. On Thursday, July 7, 2022, Twitter shares traded at $38.79. On Monday, the rate was only at the level of 32.65 dollars. Twitter’s share price is locked at $34.06 ahead of the Wall Street open this Wednesday. However, in a context of high uncertainty, there is no indication that Elon Musk and company will take further action to resolve their conflict. Elon Musk could stop fighting at any time, but for this he would have to pay a fee of about $ 1 billion.
Twitter, the main victim of Elon Musk’s hesitation
From son In addition, Twitter has hired a law firm specializing in acquisitions. But it seems that Elon Musk does not intend to be impressed: after the announcement, the entrepreneur tweeted a photo of Chuck Norris with the comment “Chuckmate”, adding in another tweet that the company would definitely “disclose information about the bots” in court. Going to justice Twitter should not initiate a $1 billion payout compensation, but force Elon Musk to take over. According to experts, the arguments put forward by the Musk camp are legally weak. John Coffey, professor of law at Columbia University, said, “Mr. Musge does not expect to win. But I think he expects to get between $10 billion and $20 billion of the price he agreed to pay.” De facto, Elon Musk is facing a dramatic change in the international context and markets that are shrinking his room to maneuver. Read also – justice Will she make Elon Musk buy Twitter? Moreover, the price of Tesla shares, which make up the bulk of his fortune, also began to unwind. As you know, getting out of a buyout deal is difficult. Even if one of the figures provided by Twitter was false or untrue, this would not be a priori sufficient reason for the unilateral denunciation of the agreement.
