Twitter shares plunge after Elon Musk closes $44 billion deal

In this photo illustration, Elon Musk’s Twitter account is seen on a smartphone screen with the Twitter logo in the background.

Paolo Gonsar | Lightrocket | Good pictures

Twitter Shares fell sharply in early market trading on Monday Elon Musk He said he will try Stop his $44 billion acquisition of the company.

Shares of the company fell nearly 9% in US premarkets, paring some losses to trade 7% lower. Tesla The stock, meanwhile, rose about 1% in premarket trading.

On Friday, Musk’s lawyer announced to Twitter’s board that he wanted to cancel the deal. The millionaire has taken issue with the number of Bots and fake accounts The company says it’s not being truthful about how much activity is real on Twitter and on the service.

Twitter, on the other hand, says it provided Musk with the information it needed to evaluate its claim that spam accounts account for only 5% of daily active users that can be monetized. Daily Tweets.

Twitter’s chairman Brett Taylor said the company would Proceed with legal action The agreement must be enforced in the Delaware Court of Chancery.

Musk responded on Monday, posting a meme mocking Twitter management. It features images of a smiling Musk with text saying the company is trying to “persuade” him to buy it in court.

A Twitter spokesperson declined to comment on the meme.

Musk is one of the most popular users of Twitter with over 100 million followers. He used the social media platform for everything from corporate communications for his various companies Hitting the stage itself He wanted to buy earlier.

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Richard Windsor, founder of research firm Radio Free Mobile, said Musk’s intention to “re-evaluate the price of Twitter in a big way” may be the reason he pulled out of the deal.

Even though he’s not a Twitter partner, Windsor says he’d sell now if he was.

“There’s still a disconnect between the fundamentals and the stock price,” Windsor told CNBC’s “Squawk Box Europe” on Monday.

“If you look at where the tech industry has gone in the last couple of months, you can put Twitter’s value somewhere between $13. [billion] At $15 billion, it’s about 50% below even where the stock is priced today.”

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