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Casablanca – As Twitter prepares to sue billionaire Elon Musk after announcing he was backing out of a $44 billion acquisition last week, the company’s shares have continued to decline in pre-market trading.
Twitter’s shares tumbled more than 6% in pre-market trade on Monday, closing at $34.37 per share.
The social media giant is worth around $26 billion at this share price, which is 40% less than the amount Musk had agreed to spend to purchase the firm and turn it private.
Twitter shares have been falling since Friday last week, after Musk revealed in a stock exchange filing that he intended to cancel the deal he had reached with the social media platform. In his filing, Musk accused Twitter of failing to provide the data needed to determine the number of bot and spam accounts on its platform.
The billionaire has expressed concern about the number of bots and false accounts on Twitter, claiming that the social media firm is not telling the truth about how much activity on its services is real.
Twitter, meanwhile, claims to have provided Musk with all of the information he required to evaluate its assertion that spam accounts account for just 5% of monetizable daily active users.
Rejecting Musk’s claims of data opacity and refusal to comply with the terms of their deal regarding fake accounts, Twitter plans to force the deal by suing Musk in the court of Delaware, the state where the company was founded. While Musk has not issued a direct statement about his plan to exit the deal, he has also vowed to take legal action against Twitter.
Musk replied to Twitter on Monday with a meme ridiculing the company’s executives for the bungled deal. The billionaire notably tweeted a laughing emoji that showed him mocking Twitter’s executive for attempting to “force” him to acquire the social media platform in court after initially opposing his bid to buy the company.
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