Twitter’s stock falls further as doubts swirl over Elon Musk’s takeover.
Summary
Shares of Twitter fell more than 5 percent in premarket trading on Monday, as investors anticipated a potentially drawn-out legal battle between the social media company and Elon Musk over his move to scrap a deal to buy the company. Mr. Musk reached an agreement to buy Twitter for $44 billion about three months ago. On Friday, he tried to back out of the legally binding acquisition agreement, claiming that Twitter had not provided the information necessary to calculate the number of spam accounts on the platform. Since the deal was signed, investors have grown increasingly skeptical that the acquisition by the mercurial billionaire would get done on the agreed terms. Twitter’s shares are trading below the $54.20 price offered by Mr. Musk, and well below the highs it hit above $70 last year.