Twitter stocks tumble after Musk pulls out of takeover deal

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Twitter stocks took a tumble on Monday (July 12) after Tesla chief Elon Musk withdrew his bid to buy the social media giant for USD 44 billion. On Wall Street, stocks of the platform dropped by 5.46 per cent to USD 34.80 by around 7:05 am (11:05 GMT). It had lost 5.10 percent before the weekend.

Musk pulled the plug on the deal of Friday. He has accused the company of ‘misleading’ statements about number of fake accounts, as per letter from his lawyers. A copy of the letter was file with the Securities and Exchange Commission (SEC)

The billionaire’s latest move to pull out of the deal that was inked in April has paved way for epic court battle over billion-dollar breakup fee.

Twiitter says that the number of fake accounts is less than five per cent. The billionaire says that the number is much higher.

According to several US media, Twitter has hired prominent New York law firm Wachtell, Lipton, Rosen & Katz. Twitter declined to comment to AFP.

After the news broke, Musk tweeted: “They said I couldn’t buy Twitter. Then they wouldn’t disclose bot info. Now they want to force me to buy Twitter in court. Now they have to disclose bot info in court,” accompanied by pictures of him laughing.

For analyst Dan Ives at Wedbush Securities, “this is a ‘code red’ situation for Twitter and its Board as now the company will go head to head against Musk in a Game of Thrones court battle.”

“We see no other bidders emerging at this time while legal proceedings play out in the courts.”

(With inputs from agencies)

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