Twitter’s stock market falls after Elon Musk’s buyout abandonment. The billionaire accuses the platform of not having provided crucial information.
Last Friday, Musk ended the takeover of Twitter. Since then, the action of the social network has fallen on the stock market. In retaliation, he could sue the billionaire for breach of contract.
Twitter falls on the stock market
Twitter’s stock price fell to $32.65. This Friday, July 8, it was still at 38.96 dollars. The withdrawal of Elon Musk seems to have repercussions on the confidence granted to the platform. The problem named by the businessman to justify his withdrawal remains the same: Twitter would have refused to give him access to information ” essential to the health of his investment.
The data concerns the number of fake accounts on Twitter and the platform’s strategies to combat this form of fraud. While the bluebird network says the number of fake accounts is less than 5%, Musk seems to think there are many more. These fake profiles are used for various purposes, such as propaganda, political manipulation, free advertising or fraud of any kind.
Breach of contract ?
Compensation for breach of contract would be at least a billion dollars. Twitter is going to get into a legal battle to win back the buyout deal or the severance fee. In this case, the platform will have to explain itself in court on the false accounts and provide evidence. Indeed, if Elon Musk can prove that Twitter broke its commitments by refusing to provide this information, he may be able to avoid paying exorbitant fees…
Yesterday, the Twitter stock market price had already fallen by around 7% since the announcements of the end of the agreement. However, the action had never reached the 54.20 dollars promised by the billionaire, which could indicate that investors never believed in this takeover. Meanwhile, the CEO of Tesla mocks the platform by posting tweets that hilariously display him over Twitter’s decision to go to court.
Source : Boursorama
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