the showdown continues

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In the United States, Twitter denounces the “unjustified” abandonment of its takeover by Elon Musk. In a letter addressed to the boss of Tesla, the social network asks the billionaire to respect his commitments. After the abandonment of the takeover of the platform by Elon Musk, Twitter fell on Monday, July 11, 2022, on Wall Street.

Elon Musk, who had offered to buy Twitter for 44 billion dollars a few months ago, withdrew this weekend. To justify his about-face, the boss of Tesla claims that the platform has not respected its contractual obligations. In particular, he accuses the company of having provided ” misleading data on the number of fake accounts. According to the billionaire, the figure of less than 5% advanced by Twitter is unverifiable in the state of the data to which it has access.

Elon Musk also points to several recent decisions from Twitter, such as “ the freezing of recruitment contrary to the obligation for the company to continue to operate normally ” and ” declining financial outlook “.

A share down 40%

For its part, the management of Twitter claims to have fulfilled all its commitments, provided for in the agreement, concluded in mid-April. The board of directors of the social network wants to force the sale, by taking the case to court. The trial is expected to be held in Delaware, located on the east coast of the United States, a state renowned for its expert courts in merger and acquisition cases.

Twitter and Elon Musk are now locked in a legal battle that could cost Elon Musk billions of dollars if he loses. A showdown that is also not good for the social network. Since the announcement of the takeover, the company’s stock has fallen 11.3% on the New York Stock Exchange to end at 32.65 dollars, 40% less than what Elon Musk had offered when he had announced his intention to buy Twitter.

A renegotiated lower price

But there may be other reasons for the decline in share value, such as falling ad revenue, struggling staff and concerns over strategic direction. It is true that its CEO, Parag Agrawal, is constantly reorganizing its teams.

For its part, Twitter absolutely wants to force Elon Musk to finalize the takeover. Many specialists believe that as soon as the trial is initiated, the two camps could start talking. Elon Musk could then end up buying the platform, but at a lower renegotiated price.

► To read also: Takeover of Twitter by Elon Musk: the reasons for an announced failure

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