Twitter Stock Falls As Musk Threatens To Bust Acquisition Plans

Elon Musk threatened Monday to terminate his $44 billion plan to buy Twitter (TWTR), accusing management of failing to comply with his request for data on the number of users and fake accounts on the social media platform. Twitter stock dropped.

X

In a letter accessed by the Wall Street Journal, Musk said Twitter has refused to provide data he seeks, which includes the number of fake accounts, bots and spam.

Twitter stock fell 3.5% to 38.80 during morning trading on the stock market today.

The letter, from one of Musk’s lawyers, said the failure of Twitter to hand over the data was a “clear material breach” of the terms of their agreement. Musk reserves the right not to complete the deal, the letter said.

Twitter Stock: Complications In Getting Data

Twitter remains obligated to provide information and data for “any reasonable business purpose related to the consummation of the transaction,” according to Musk’s letter.

But getting the data could become difficult. Musk that buyers typically perform on targets.

Musk watchers say he may be overextending himself with his plans to buy Twitter. A number of incidents have called Musk’s behavior into question, including last week’s report that he wants to cut Tesla’s workforce because he has a “super bad feeling” about the economy. Tesla (TSLA) stock plunged more than 9% on the news.

Last week, the Twitter board unanimously recommended that shareholders accept Musk’s offer of $54.20 a share for TWTR stock. However, the ultimate outcome remains unclear.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

YOU MAY ALSO LIKE:

Is Elon Musk Headed For Burnout With Tesla CEO’s Risky Plan To Buy Twitter?

Elon Musk Raises Commitment In His Bid To Acquire Twitter

You Can’t Buy SpaceX Yet But These Space Stocks Are Up For Grabs

Elon Musk Targets Twitter With $43 Billion Bid To Take It Private

 » Read More  » Read More

Tags: No tags

Comments are closed.