Twitter (TWTR) shares surge after Hindenburg takes long position

2 min read | July 14, 2022 03:19 AM AEST | By Mridul Gogoi

Image source: © Shutter999 | Megapixl.com

© Kianlin | Megapixl.com

Twitter shares tumbled on Tuesday over canceled deal

Shares of Twitter plunged on Tuesday as both companies geared up for a legal tussle over the nixed deal.

The legal battle is the latest twist in the months-long controversies that began in April soon after Musk bought a stake in Twitter and later offered to purchase the company.

Then crept in the spam bots’ disputes after which Musk put the buyout deal on hold in May until TWTR proved that its spam accounts are less than 5% of its total users. Musk had even assembled a group of investors to fund a portion of the transaction.

In May, Hindenburg said that Musk’s offer could be rejigged if he walked away from the agreement.

Bottom line:

Although Hindenburg did not discuss in detail the threat the lawsuit would pose to Musk, legal experts believe that Twitter would have an upper hand.

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