Twitter shares drop by over 9% amid Musk deal collapse

Shares of the US Twitter company, which owns the social network of the same name, decreased by $3.37 (9.15 per cent) on July 11 after the termination of the purchase agreement by entrepreneur Elon Musk.

One share cost $33.48 as of 20:30 (GMT+4) on July 12. The price of the shares continues to fall. The drop was more than 5 per cent at the start of trading, then it surpassed 7 per cent and then exceeded 9 per cent, TASS reports citing the New York Stock Exchange data.

Musk previously terminated the agreement to buy Twitter. A copy of the notice addressed to the company's legal department head, Vijaya Gadde, published on the website of the US Securities and Exchange Commission testifies to this.

According to the letter, the company has not fulfilled a number of obligations envisaged by the agreement. It did not provide complete information that could show the number of fake accounts and accounts used for mass mailing.

Chairman of the board of directors of the company Bret Taylor noted that Twitter intends to sue the entrepreneur to enforce the deal. The US Securities and Exchange Commission said that in case of a breach of the agreement, Musk will have to pay the compensation worth about $ 1 billion to the company.

Twitter management reported in April 2022 that Musk had offered to acquire the social network for $44 billion. The entrepreneur said in May 2022 that he was trying to obtain information that would confirm that fake accounts and advertising which is used for mass mailing are less than 5 per cent of their total number on Twitter.