Twitter (TWTR34) collapses on the stock market after Musk gives up on buying the social network
The $44 billion deal was canceled by the billionaire last Friday, kicking off a lawsuit
The actions of Twitter (TWTR) fall by more than 8% on the US stock market Nasdaq this Monday, 11, following the losses of the last trading session when billionaire Elon Musk announced that he gave up on buying the social network.
Last Friday, Musk’s lawyer notified Twitter’s board that the businessman wants to cancel the $44 billion deal. The shares had already retreated 5.10%.
In response to Musk’s retreat, the BDRs of the Twitter (TWTR34) traded in Brazil are also down sharply. Shares in Tesla, of which Musk is CEO, are also hurt by the withdrawal.
- Twitter (TWTR): – 8.03%
- Twitter (TWTR34): – 5.76%
- Tesla (TSLA): – 5.47%
- Tesla (TSLA34): – 3.57%
Musk could be forced to pay $1 billion for not backing out of the social network’s purchase deal.
the breach of agreement
In a document sent to the Securities and Exchange Commission (SEC, the US market regulator), Musk claims that the company “appears to have provided false and misleading information” and “has failed to comply with its contractual obligations”.
The decision opens space for a legal dispute. Twitter will go to court to get Musk to comply with the purchase agreement. “The Twitter Board is committed to closing the transaction at the price and terms agreed with Musk and plans to take legal action to enforce the merger agreement,” Bret Taylor, chairman of the board, said in a tweet.