Elon Musk’s Twitter saga continues to impact social media platform stock prices. In the latest, Twitter shares plunged by 11.3 percent Monday after the world’s richest man announced withdrawal of his 44-billion-dollar takeover bid.
Musk announced the termination of a USD 44 billion Twitter purchase deal in a letter sent by Musk’s team to Twitter. The deal was abandoned “due to multiple breaches of the purchase agreement.”
Following Elon Musk announcing his decision to terminate USD 44 billion takeover deal, Twitter shares witnessed a sharp decline, setting the stage for a legal battle. According to a report by The Hill citing FactSet data, Twitter shares currently stand at USD 33.31 each, which is significantly lower than Musk’s offer of USD 54.20 per share.
Twitter shares are now lower than they were in April, when Musk acquired his initial 9% stake in the company. Additionally, the shares of Musk-owned automotive company Tesla have dropped by 27% since Musk announced that he would buy Twitter, larger than the overall 10% drop in the S&P 500 over that period.
This development comes at a time when the social media platform is planning a major legal action against Elon Musk over exiting the takeover deal. While Twitter shares closed 11% lower at $32.65, erasing about $3.2 billion in market value, shares in Tesla Inc. fell nearly 7%, according to Bloomberg report.
In April, Musk reached an acquisition agreement with Twitter at USD 54.20 per share in a transaction valued at approximately $44 billion. However, Musk put the deal on hold in May to allow his team to review the veracity of Twitter’s claim that less than 5% of accounts on the platform are bots or spam.
Back in June, Musk had openly accused the microblogging website of breaching the merger agreement and threatened to walk away and call off the acquisition of the social media company for not providing the data he has requested on spam and fake accounts.