July 12, 2022
2 mins read

Twitter shares slump amid Musk’s walkout

On Saturday, Twitter announced it was going to sue the Tesla CEO….reports Asian Lite News

Shares of microblogging site Twitter fell about 6 per cent in premarket trading on Monday, amid the recent walkout by Elon Musk.

The world’s richest person on Friday terminated the $44 billion deal to buy Twitter, stating that the company was in “material breach” of their agreement and had made “false and misleading” statements during negotiations.

On Saturday, Twitter announced it was going to sue the Tesla CEO.

The “board is committed to closing the transaction on the price and terms agreed upon with Musk and plans to pursue legal action to enforce the merger agreement”, Twitter Chairman Bret Taylor said in a tweet.

“We are confident we will prevail in the Delaware Court of Chancery,” he added.

In reply, Musk on Monday poked fun at Twitter and shared a meme.

Musk’s meme read: “They said I could not buy Twitter. Then they would not disclose the bot information. Now they want to force me to buy Twitter in court. Now they have to disclose the bot information in court.”

Musk will also have to pay $1 billion in termination fees to the micro-blogging platform, as per an earlier filing with the US Securities and Exchange Commission (SEC).

Musk had put the deal on hold over the actual number of spam/fake accounts and bots on the platform, and sought a reply from Twitter CEO Parag Agrawal.

On Thursday, Twitter claimed it is suspending more than 1 million spam accounts a day.

“That is indeed the real question,” Musk replied on Friday.

The new figure doubled the previous update from Agrawal who said that the platform removes 500,000 spam accounts a day.

“We suspend over half a million spam accounts every day, usually before any of you even see them on Twitter. We also lock millions of accounts each week that we suspect may be spam — if they can’t pass human verification challenges (captchas, phone verification, etc),” Agrawal had tweeted in May.

Musk will have to pay $1 billion in termination fees to the micro-blogging platform.

As per an earlier filing with the US Securities and Exchange Commission (SEC), “Musk will be required to pay Twitter a termination fee of $1 billion”, if he cancels the deal.

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