Its shares rose 23 percent to $52 on the New York Stock Exchange on Tuesday as Twitter revealed that Tesla chief Elon Musk would continue with his Twitter buyout deal.
Twitter shares opened at $42 on the NYSE on Tuesday. But it didn’t take long for excited investors to see Twitter’s shares rise 12.7 percent in price. However, its shares were stopped Due to the volatility caused by the development of the news. Following the resumption of shares on the NYSE, the tech firm’s shares continued to rise and eventually posted a 23.7 percent increase at the end of the NYSE.
The official account of the micro-blogging site confirmed the deal in its recent tweet. The tweet referred to a letter from Musk parties that he filed with the SEC. Musk has offered to continue with the old deal and close the transaction at $54.20 per share.
Tesla shares fall 3%
Twitter Shares weren’t the only ones affected by news of the finalization of a deal between Twitter and Elon Musk, as Tesla shares fell 3 percent on the NYSE on Tuesday. The company’s shares opened on Tuesday at $250.75 and hit a low of $242.01. Its shares closed at $249.63 on the previous day.
Twitter-Musk legal battle after Tesla chief withdrew from $44 billion deal
Ever since Elon Musk announced his withdrawal from a USD 44 billion deal with Twitter in July this year, he has been involved in a legal battle with the micro-blogging site. Elon Musk cited a lack of transparency on the part of Twitter as behind his back from the deal. He alleged that the micro-blogging site was not giving information about the number of fake accounts on its platform.
The social firm struck back against Musk just four days later, filing a lawsuit in Delaware Chancery Court, with hopes that Musk would be forced to buy the company.
Fake accounts play a vital role in spreading misinformation and pose a major hurdle for advertisers in selling ads to genuine ones. In April, the Mercuric CEO told a Twitter board member — according to newly released text messages — that “drastic” action was necessary to tackle the bots.
“This is a clear indication that Musk identified going to Delaware court that the chances of winning versus the Twitter board were very low and that this $44 million deal was about to be completed one way or another,” said Wedbush analyst Dan Ives. Told.
Meanwhile, Twitter had called for a shareholder lawsuit against Twitter for voiding its deal and summoning the former Twitter CEO.
(with inputs from ANI)
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