Twitter’s shares fall after Musk backs out of his deal to buy the company
Under the terms of the agreement, Musk could owe Twitter a $1 billion break-up fee. This is why Tesla’s CEO is putting the blame on his decision to back away from the deal on the alleged “false and misleading representations” that he alleges were made by Twitter.
University of Richmond law professor Carl Tobias stated that “The way these things usually work is that if there’s a billion-dollar breakup fee and you’re the one trying to acquire, then that is enforced against you unless there’s some kind of material breach or some kind of reason that can be offered up that persuades a court that Twitter, for example, is not making good on the deal.”
During regular trading hours on Friday, Twitter shares declined $1.98 or 5.1% to $36.81. In after-hours trading, the stock declined another $1.97 or 5.35% to end the week at $34.84. The stock’s 52-week high is $73.34 and it has a 52-week low of $31.30.
