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Twitter Counterattacks Mask | Business and Economic News

Twitter’s share price showed the largest daily decline in more than 14 months on Monday, clearing more than $ 3 billion in valuations.

A few days after Tesla’s chief tried to withdraw from the $ 44 billion deal, Twitter counterattacked Elon Musk, saying that the world’s wealthiest person “intentionally” violated a deal to buy a social media company. Blame.

Twitter violated its obligations under the merger agreement, as in a letter sent to Musk on Sunday and submitted to regulators on Monday, indicating that Musk is aiming to close the transaction on Friday. Said not.

Instead, Tesla’s chief accused him of “intentionally, intentionally, intentionally, and substantially violating the agreement.”

Twitter said in a letter that the transaction was not closed, “Twitter includes an agreement that Mr. Musk and the other Musk parties are obliged to complete and be effective with their respective reasonable best efforts. Requires compliance with obligations under. Transactions intended by the Agreement. “

The company has Will sue the mask He laughed when he sent a series of tweets joking about the threat of forcing an agreement with Twitter in court on Monday to force him to close the deal. Twitter plans to file a proceeding in Delaware earlier this week, people familiar with the matter told Reuters.

Twitter said in a letter that the merger agreement would remain valid and that it would take steps to conclude the agreement.

Twitter’s share price fell 11.3% to $ 32.65, with a 40% discount on Mask’s $ 54.20 bid, the highest daily rate in over 14 months, worth more than $ 3 billion. Was lost. They rebounded less than 1 percent on extended transactions.

Tesla’s stock fell almost 7%.

According to technology and data analytics firm S3 Partners, a trader who put up a plunge in Twitter on Monday made a profit of $ 148 million on a market value of $ 1.3 billion on a short-term bet on Tesla. Made a profit.

“Twitter’s board must consider the potential harm that additional internal data exposed in the proceedings could harm our employees and shareholder base,” said benchmark analyst Mark Zgutowicz.

Francis Pileggi, a corporate litigator with Luis Blissboa, Delaware, said that if Musk opposes the Twitter proceedings, the so-called “bots” of social media giants could be at the center of future proceedings. Said. Claims that the company was misrepresented Number of fake accounts.

“I would be surprised if he was forbidden to get that information,” said Pileggi.

Pileggi said that if the number of fake accounts is many times higher than Twitter’s estimated 5%, it could lead to negotiations to cut prices on social media platforms.

According to legal experts, the 16-year-old social media company has filed a strong proceeding against Musk, but may choose to renegotiate or settle instead of a protracted court battle.

Jeffreys analyst Brent Chill believes that Elon Musk’s intention to end the merger is based on recent market sellouts rather than Twitter’s failure to meet his demands. “.

“If you don’t have a deal, you shouldn’t be surprised to find a floor with a stock price of $ 23.5.”

https://www.aljazeera.com/economy/2022/7/12/twitter-fires-back-at-musk Twitter Counterattacks Mask | Business and Economic News

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