The Twitter logo and Elon Musk account on July 8, 2022 in Los Angeles (AFP / Chris DELMAS)
Shares of Twitter fell Monday morning after Tesla boss Elon Musk decided to abandon his plan to buy the platform for $ 44 billion.
The stock of the social network fell 5.46%, to $ 34.80, around 11:05 GMT. It had lost 5.10% before the weekend.
Mr. Musk said in a letter to Twitter on Friday that he was terminating the deal with the board of directors of the group, believing the company had failed to fulfill its commitments by not disclosing the part of the fake and spam accounts.
The social network claims that the number of inauthentic accounts is less than 5%, a figure disputed by the billionaire who believes it to be much higher.
The two sides are now engaged in a legal brawl, which could cost Mr. Musk a few billion dollars in the event of a loss.
According to several American media outlets, Twitter has joined the services of the New York law firm Wachtell, Lipton, Rosen & Katz. This same company had represented the Californian group soon after Mr. Musk’s offer in April, when the board of directors had initially chosen to resist the project before submitting it.
When questioned by AFP, Twitter did not immediately confirm this information.
For his part, Mr. Musk shared his first reaction on Twitter on Monday since the announcement of his retirement by posting an image containing several photos in which he appears hilarious.
“They said I couldn’t buy Twitter. Then they refused to reveal false account information. Now they want to force me to buy Twitter in court. Now they have to reveal false account information,” we can read next to each shot.
Dan Ives of Wedbush Securities said, “This is ‘extremely dangerous’ for Twitter and its board of directors as the company faces Musk in a Game of Thrones-style legal battle to save the company. Transaction and / or recover at least $ 1. billion severance pay. ”
“We don’t see any other bidders in evidence at this time as legal proceedings are about to begin in court,” adds the analyst.
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