Twitter Shares to be Suspended From Trading, Binance, Sequoia, Others Notified

Jack Dorsey, founder and CEO of Twitter

Twitter shares will be suspended from trading on Friday as billionaire Elon Musk faces a court-ordered 28 October deadline to close his US$44-billion deal to buy the social media company.

Musk, the world’s richest person, visited Twitter’s headquarters in San Francisco on Wednesday and hinted he was the company’s top boss after updating his profile bio to “Chief Twit”.

Equity investors, including Sequoia Capital, Binance, Qatar Investment Authority and others, have received the requisite paperwork for the financing commitment from Musk’s lawyers.

Jack Dorsey, founder and CEO of Twitter
Jack Dorsey, founder and CEO of Twitter

The deal’s completion will mark an end to a lawsuit by Twitter, which, along with investors, now expects the deal to be completed on its original terms of $54.20/share.

Read also : Jack Dorsey Says Twitter Should Have Been a Protocol, Not a Company

Twitter’s shares were up about 1% at $53.92 in premarket trading, compared with Musk’s offer price of $54.20/share. The stock has surged nearly 65% from a four-month low hit in July. 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Musk’s Threats Plunge Twitter Shares

CEO of Tesla, Elon Musk

Elon Musk’s continuous warning that he may walk away from the US$44-billion deal to acquire Twitter if the social media network fails to provide data on spam and fake accounts, has had a negative impact on Twitter forcing its shares into a spiral.

The letter said Twitter was in a “clear material breach” of its obligations and that Musk reserves all rights to terminate the merger agreement.

CEO of Tesla, Elon Musk
CEO of Tesla, Elon Musk

Earlier in March, Musk said he would put the deal “temporarily on hold”, while he waits for the social media company to provide data on the proportion of its fake accounts.

Read also : Elon Musk Hints at Reduced Offer Price for Twitter

“Musk believes Twitter is transparently refusing to comply with its obligations under the merger agreement, which is causing further suspicion that the company is withholding the requested data due to concern for what Musk’s own analysis of that data will uncover,” according to the letter.

“Musk believes the company is actively resisting and thwarting his information rights,” the letter by Musk’s lawyers said.

Twitter shares were down 5.5% at $37.95 in pre-market trading. 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry