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Twitter Shares Plummets As Elon Musk Withdraws Deal 

Twitter shares dropped on Monday after Elon Musk declared he was terminating a $44 billion (£36 billion) bid to purchase the social media site.

Mr. Musk withdrew after alleging that Twitter had not provided sufficient details regarding the quantity of spam and phony accounts that were present on the platform.

Twitter has retained a premier US law firm and wants to file a lawsuit to force the purchase through.

In a tweet, Mr. Musk stated that Twitter would have to “disclose bot information” in court.

After that, the multi-billionaire tweeted a photo of American actor and martial artist Chuck Norris seated at a chessboard along with the words “Chuckmate.”

As Monday’s trading came to a conclusion, the share price of Twitter was roughly $32.64; this is a further decline from the takeover price of $54.20 per share that Elon Musk and Twitter’s board had agreed upon in April.

Investors can now respond to Mr. Musk’s declaration on Friday that he wants to back out of the agreement for the first time.

Tesla CEO Elon Musk announced ambitions to purchase Twitter in April, but the deal was shelved a month later over concerns about the prevalence of bogus accounts on the platform.

The original merger agreement calls for a $1 billion (£830 million) break-up fee, but Twitter wants Elon Musk to compete the deal rather than insisting that he pay the cash. Twitter’s chairman, Bret Taylor, tweeted, “The Twitter board is dedicated to closing the transaction on the price and terms agreed upon with Mr. Musk.”

One of the top corporate law firms in the world, Wachtell Lipton Rosen & Katz in New York, has been hired by Twitter.

Professor John Coffee, a former adviser to the Nasdaq and the New York Stock Exchange, told the BBC that Mr. Musk didn’t have a “strong legal argument.”

It will be a major conflict, but, according to him, it will be peacefully resolved. “I believe Mr. Musk does not anticipate winning. He probably wants to reduce the sum he promised to pay by another 10 or 20 billion.”

Mr. Musk stated when the contract was first reached that he sought to improve the website by “beating the spam bots and authenticating all humans.” Twitter has long struggled with artificial “bots” that continuously post inaccurate or harmful content.

The businessman had requested proof to support the company’s claim that less than 5% of its users are spam and bot accounts. According to Mr. Musk, up to 20% or more of users may be made up of spam or automated accounts.

Shares in Mr. Musk’s electric vehicle company Tesla plummeted by almost 20% after he initially agreed to buy Twitter in April. There was subsequently talk that Mr. Musk might use the approximately $8.5 billion (£6.8 billion) raised to help finance the transaction.

When stock markets turned, Mr. Musk “kind of got cold feet,” according to Ann Lipton, a litigator who has handled class actions involving some of the biggest corporations in the world. She added that it “looked like his wealth was impacted when Tesla’s stock price dropped as well.”

READ MORE: NNPC Blocks Exxon Mobil’s Asset Sale To Seplat

He is currently looking for a way out, but merger agreements are extremely difficult to exit, she continued. “Musk asserts that Twitter misrepresented the volume of spam on the network, even if there was a false representation as he alleges. You cannot break the agreement because of that alone.”

A fellow journalist messaged me when it was originally reported that Elon Musk had made a bid to purchase Twitter, saying, “Twenty pounds that it never happens.”

I haven’t made a £20 profit or loss yet, but it’s obvious that this trade isn’t going as expected.

Was Mr. Musk’s pursuit of the social network so quickly and forcefully a costly mistake? He may not have anticipated how the purchase would affect his other businesses, like the electric vehicle manufacturer Tesla. After news broke that he was using his shares as collateral to finance the deal, its shares dropped.

If Twitter’s statistics are to be believed, his concern with bots and spam may not be the quick remedy for the social network that he had hoped for. And if they aren’t, it isn’t a compelling enough legal justification for the transaction to collapse on its own. As things are, it can’t be said that it has significantly decreased Twitter’s revenue.

Given its early resistance to having Mr. Musk lead it, Twitter’s apparent belief that it can still exert pressure on the richest man in the world is astonishing.

Despite the $1 billion termination fee appearing to be little change to a multibillionaire, neither side wants to pay it.

What we’ll likely witness next is a revised, lesser offer, along with Musk continuing to make fun of Twitter by tweeting memes about it to his 100 million followers on Twitter’s platform. Awkward.

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Uchara Faith
Faith is a valiant writer who has an undisputed passion for writing. She has worked with many highly reputable companies as content creator, radio presenter. She has a book to her name titled ECHO OF A DISTRESSED HEART. She's goal driven oriented person.

Twitter shares dropped on Monday after Elon Musk declared he was terminating a $44 billion (£36 billion) bid to purchase the social media site.

Mr. Musk withdrew after alleging that Twitter had not provided sufficient details regarding the quantity of spam and phony accounts that were present on the platform.

Twitter has retained a premier US law firm and wants to file a lawsuit to force the purchase through.

In a tweet, Mr. Musk stated that Twitter would have to “disclose bot information” in court.

After that, the multi-billionaire tweeted a photo of American actor and martial artist Chuck Norris seated at a chessboard along with the words “Chuckmate.”

As Monday’s trading came to a conclusion, the share price of Twitter was roughly $32.64; this is a further decline from the takeover price of $54.20 per share that Elon Musk and Twitter’s board had agreed upon in April.

Investors can now respond to Mr. Musk’s declaration on Friday that he wants to back out of the agreement for the first time.

Tesla CEO Elon Musk announced ambitions to purchase Twitter in April, but the deal was shelved a month later over concerns about the prevalence of bogus accounts on the platform.

The original merger agreement calls for a $1 billion (£830 million) break-up fee, but Twitter wants Elon Musk to compete the deal rather than insisting that he pay the cash. Twitter’s chairman, Bret Taylor, tweeted, “The Twitter board is dedicated to closing the transaction on the price and terms agreed upon with Mr. Musk.”

One of the top corporate law firms in the world, Wachtell Lipton Rosen & Katz in New York, has been hired by Twitter.

Professor John Coffee, a former adviser to the Nasdaq and the New York Stock Exchange, told the BBC that Mr. Musk didn’t have a “strong legal argument.”

It will be a major conflict, but, according to him, it will be peacefully resolved. “I believe Mr. Musk does not anticipate winning. He probably wants to reduce the sum he promised to pay by another 10 or 20 billion.”

Mr. Musk stated when the contract was first reached that he sought to improve the website by “beating the spam bots and authenticating all humans.” Twitter has long struggled with artificial “bots” that continuously post inaccurate or harmful content.

The businessman had requested proof to support the company’s claim that less than 5% of its users are spam and bot accounts. According to Mr. Musk, up to 20% or more of users may be made up of spam or automated accounts.

Shares in Mr. Musk’s electric vehicle company Tesla plummeted by almost 20% after he initially agreed to buy Twitter in April. There was subsequently talk that Mr. Musk might use the approximately $8.5 billion (£6.8 billion) raised to help finance the transaction.

When stock markets turned, Mr. Musk “kind of got cold feet,” according to Ann Lipton, a litigator who has handled class actions involving some of the biggest corporations in the world. She added that it “looked like his wealth was impacted when Tesla’s stock price dropped as well.”

READ MORE: NNPC Blocks Exxon Mobil’s Asset Sale To Seplat

He is currently looking for a way out, but merger agreements are extremely difficult to exit, she continued. “Musk asserts that Twitter misrepresented the volume of spam on the network, even if there was a false representation as he alleges. You cannot break the agreement because of that alone.”

A fellow journalist messaged me when it was originally reported that Elon Musk had made a bid to purchase Twitter, saying, “Twenty pounds that it never happens.”

I haven’t made a £20 profit or loss yet, but it’s obvious that this trade isn’t going as expected.

Was Mr. Musk’s pursuit of the social network so quickly and forcefully a costly mistake? He may not have anticipated how the purchase would affect his other businesses, like the electric vehicle manufacturer Tesla. After news broke that he was using his shares as collateral to finance the deal, its shares dropped.

If Twitter’s statistics are to be believed, his concern with bots and spam may not be the quick remedy for the social network that he had hoped for. And if they aren’t, it isn’t a compelling enough legal justification for the transaction to collapse on its own. As things are, it can’t be said that it has significantly decreased Twitter’s revenue.

Given its early resistance to having Mr. Musk lead it, Twitter’s apparent belief that it can still exert pressure on the richest man in the world is astonishing.

Despite the $1 billion termination fee appearing to be little change to a multibillionaire, neither side wants to pay it.

What we’ll likely witness next is a revised, lesser offer, along with Musk continuing to make fun of Twitter by tweeting memes about it to his 100 million followers on Twitter’s platform. Awkward.

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