Twitter shares tumbled more than 6% on Monday after billionaire Elon Musk said he backed out of his $44 billion offer to the company and vowed to challenge Musk in court to uphold the deal.
Musk said that Twitter did not provide enough information about the number of fake accounts. However, Twitter said last month that it provided Musk with “raw data” of hundreds of millions of daily tweets when it raised the issue again after announcing its purchase of the social media platform.
Musk agreed to a $1 billion commission as part of the takeover deal, though CEO Parag Agrawal and company appear ready for a legal battle to secure the sale.
“For Twitter, this fiasco is a catastrophic scenario and will lead to many problems ahead for Prague and its partners,” wrote Dan Ives, a Wedbush analyst who tracks the company’s performance.
Twitter’s stock sell-off pushed prices below $35 a share, a far cry from the $54.20 a share Musk agreed to pay the company.