Twitter shares, on Monday, July 11, 2022, dropped by 9%, as it was trading $33.58 when compared to the $36.85 it traded on Friday, July 8.
Before the weekend ended, Twitter shares had dropped by 6% as it opened trading at $34.61 today.
BizWatch Nigeria understands that billionaire Elon Musk’s effort to pull the plug on his highly-publicised $44 billion purchasing deal with Twitter, saw the micro-blogging site record its biggest drop in almost two months.
In a filing published after the stock market closed on Friday, Musk reported that his lawyers sent a letter to Twitter terminating the deal.
In the text of the letter, Musk’s attorney claimed that Twitter had “not complied with its contractual obligation.” Therefore, the billionaire was backing out.
“Twitter has failed or refused to provide this information,” the attorney claimed. “Sometimes Twitter has ignored Mr. Musk’s requests, sometimes it has rejected them for reasons that appear to be unjustified, and sometimes it has claimed to comply while giving Mr. Musk incomplete or unusable information.”
According to the attorney, Musk intended to end his initial deal of buying Twitter, citing three breaches of a merger agreement by the social media platform.
Meanwhile, Twitter had hired an elite law firm Wachtell, Lipton, Rosen & Katz to take legal action against Musk for terminating the deal.
Financial Times reports that the San Francisco company is preparing to file its lawsuit with the Delaware Court of Chancery against Musk as the week progresses.
