Twitter has appointed a legal firm to take Elon Musk to court to either force him to complete on the $44 billion deal or pay the $1bln break fee after stating he wants to walk away from his proposal to buy Twitter (TWTR).
Early trade on the IG platform for the social media giant, Twitter, suggests it's going to open around about 7% below where it closed out Friday's trade. We've been hearing over the weekend the reaction to the news on Friday that Elon Musk wants to drop his bid for the social media company. Twitter, over the weekend, appointing the law firm Wachtell, Lipton,
Rosen & Katz, which is a well-known firm on Wall Street, to look at taking issue with Elon Musk's positioning, either to force Musk to go through with the $44 billion deal or to come up with the $1 billion break fee. Let's take a look at the share price chart. We can see quite clearly here this drop of 7%, and in today's session
We've just peaked, albeit briefly, below this line of support at $33.60 to take us down there, intraday, down to levels not seen since the 15th March. So quite clearly there is some downside to come when we look at the US trade later on today. Elon Musk said on Friday he planned to walk away from the deal, arguing that Twitter had failed to provide enough information to prove that the number of fake and spam accounts on its platform stands at less than 5%, as it has long estimated. Now,
A legal case on this will force Twitter to come out into the open to declare exactly what's going on in terms of the fake and spam accounts that it has, and that could cause some embarrassment for the company, and I suspect we could see more downside to come, potentially, if this does turn into a dirty legal battle.
Jeremy Naylor | Writer, London
12 July 2022