Twitter Plunges, Tesla Rises as Musk Threatens to Terminate Takeover Deal -Breaking
Investing.com — Twitter (NYSE:) stock plunged in premarket trading on Monday after Tesla (NASDAQ:) CEO Elon Musk threatened to terminate his takeover offer for the company because of its refusal to give him the information he wants over fake accounts on its social media site.
Musk claimed in an application to the Securities and Exchanges Commission, that the Twitter board failed to provide him with more information about fake and spam accounts. This breached their agreement under which Musk and other investors would privatize the company at $54.20 per share.
The stock of Twitter fell to $39.95 (1307 GMT), at 9.07 am ET) as a response. Tesla stock was however up 3.6%. Tesla stock was up 3.6%, compared to Twitter stock. Musk could need to sell off or borrow from his stock in Tesla to finance the deal. Therefore, any action to reduce the probability of the Twitter Takeover being approved reduces the risk of Tesla overhang.