Home Business Twitter shares plunge as Musk announces termination of Twitter acquisition deal

Twitter shares plunge as Musk announces termination of Twitter acquisition deal

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Twitter shares have plummeted in the stock market after announcing unilateral termination of Elon Musk’s takeover deal.

Twitter’s stock fell more than 7% in the pre-market alone on the day after Musk announced that it would halt its $4.4 billion takeover of Twitter, CNBC reported on the 11th (local time), which means that the market value is weak compared to Friday’s close. It said it meant a loss of $2 billion.

According to CNBC, the average target price of Twitter suggested by Wall Street is $49.3 per share, which is not much different from the first price of $45.10 when Twitter went public in 2013.

In late April, Musk signed a deal to acquire Twitter for $44 billion. However, in mid-May, Musk sent a contract pending through his lawyer saying that the ratio of bots and spam accounts, which are automated advertising accounts on Twitter, was too high. .

Musk could face a $1 billion penalty for breaking the contract, and the share price has already fallen on Twitter, experts said, whoever wins will hurt.

Meanwhile, Musk has been criticized by many for posting a meme mocking Twitter executives for the failed deal.

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