Twitter (TWTR) Stock Dips on Elon Musk’s Latest Attempts to Terminate Deal

  • Elon Musk is still attempting to terminate his buyout deal with Twitter (TWTR).
  • Musk is reportedly citing allegations in a whistleblower report, but it looks like Twitter is pushing back on his deal-ending efforts.
  • TWTR stock is down slightly as these developments come to light.
Twitter (TWTR) logo on smartphone and Elon Musk in the background.
Source: Rokas Tenys / Shutterstock.com

Today is another day — and another wrinkle in the ongoing drama between Tesla (NASDAQ:TSLA) CEO Elon Musk and Twitter (NYSE:TWTR). This time, Musk is reportedly citing a whistleblower report as he works to terminate his Twitter buyout deal. However, Twitter appears to be pushing back against these efforts. Amid the news, TWTR stock is declining slightly in early morning trading.

Here’s the scoop. Musk wants to terminate his $44 billion deal to buy Twitter. To support this endeavor, the Tesla CEO is now citing a whistleblower report from Twitter’s former Head of Security, Peiter Zatko.

Reportedly, Zatko accuses Twitter of “extreme, egregious deficiencies” regarding its privacy, security and content moderation. Mike Ringler — a legal representative for Musk — also points to the allegations made by Zatko:

“Allegations regarding certain facts, known to Twitter prior to and as of July 8, 2022, but undisclosed to the Musk Parties prior to and at that time, have since come to light that provide additional and distinct bases to terminate the Merger Agreement.”

This is a vague statement, no doubt. But it’s accusatory nonetheless. Now, it looks like Musk is prepared to use the recent whistleblower allegations in his legal battle against the company.

How Is This Affecting TWTR Stock?

TWTR stock is currently declining by around 1% in early trading today. It’s possible that Wall Street isn’t too pleased with the legal back-and-forth battle between Musk and the social media platform.

It’s hard to blame them, as it appears that this spat could continue for a while. Twitter isn’t taking any of this lying down, however. The company’s lawyers say Elon Musk’s notice of termination is “invalid and wrongful” under the agreement.

Twitter also asserts that Musk’s termination notice is based on third-party statements that are “riddled with inconsistencies and inaccuracies.” Presumably, Twitter’s management and attorneys don’t view the whistleblower’s allegations as entirely credible, either.

Eventually, Musk’s wish to be fully rid of Twitter may be granted. Until then, though, expect more twists and turns.

On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.


Article printed from InvestorPlace Media, https://investorplace.com/2022/08/twitter-twtr-stock-dips-on-elon-musks-latest-attempts-to-terminate-deal/.

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