On July 8, Elon Musk made a surprise move when he terminated Twitter Inc.'s $ 44 billion purchase deal, extending the social media giant's controversial series of acquisitions.
The news has made Twitter shares fall 11.3% at $ 32.65 during Monday’s close, a 40% discount or below the $ 54.20 level during Musk’s bidding and is the biggest daily percentage drop in 14 months.
Even so during the extended trading session, the social media shares were seen to rise around 1%.
On the other hand, shares of Musk -owned Tesla Inc were also seen declining 6.6%.
Revealing the decision to terminate the acquisition agreement, Musk argued that Twitter ‘violated the agreed material’ and ‘gave false and misleading statements’.
According to Musk's filing with the Securities and Exchange Commission (SEC), he repeatedly asked for data on bot spam but Twitter allegedly refused to submit the information other than boycotting his request.
In fact, according to further filings that Twitter submitted incomplete or unusable information thus violating the merger agreement.
In response to the termination, Twitter is said to have hired a lawyer and filed a lawsuit against Musk.
In self -defense, the social media giant said that they did not violate any merger agreements as alleged by Musk.
In addition, the company stated that the agreement will continue in any way.
Meanwhile, Jefferies analyst Brent Thill commented that the intention to terminate the acquisition of Musk was due to a large selling session in the market in recent weeks in addition to Twitter's 'failure' to submit the requested data.
Another analyst, Mark Zgutowicz, said the Twitter board took into account all potential dangers to employees and shareholders in submitting any internal data.
