Twitter shares are now trading at $34.31, down 6.89% from their closing price on Friday.
The new price reflects a 36% drop from Elon Musk’s initial offer to buy the company at $54.20 a share in April.
While Twitter accepted Musk’s $44 billion buyout offer, the billionaire put the deal on hold. Musk claimed that the social network presented misleading data about the number of fake profiles and bots (robots) on the platform.
Before that, Musk had already hinted that he would give up on buying Twitter several times. According to the entrepreneur, Twitter is not transparent about the number of fake and spam accounts.
Finally, on Friday (9) Musk finally terminated the agreement, once again alleging an alleged failure by Twitter to provide him with data related to the spam accounts.
However, a clause within the original merger agreement grants Twitter permission to force the billionaire to close the deal.
Twitter president Bret Taylor has already confirmed that his company will file legal action against Musk. In the lawsuit, the company hopes that justice will force Musk to close the deal on the terms they agreed to.
Adam Crisafulli, founder of Vital Knowledge, said it’s no surprise that Musk is trying to walk away from the business.
“The problem, though, is that this whole saga has probably been pretty unsettling in the last few months,” he said.
According to him, this could weigh on Twitter’s performance throughout the rest of the year. Recently, the social network said it removed 1 million spam accounts from its platform daily. This supposedly represents a figure well below 5% of the total amount of its user base.
Binance backed Musk’s initial offer to buy Twitter with $500 million. However, the Binance CEO clarified that he would only continue to support if Musk followed through on the deal.
“If he doesn’t, then I think we’re out,” CZ said.
Meanwhile, while ETH founder Vitalik Buterin has said he doesn’t “oppose” Musk at the helm of Twitter.
Instead, he said he objected to the general enthusiasm for the hostile takeover of a social media company.