Looming Musk-Twitter legal battle hammers company shares

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Twitter shares slid more than six per cent in the first day of trading after Elon Musk said he was abandoning his takeover bid. 9News

and the social media platform vowed to challenge Musk in court to uphold the agreement.

Musk agreed to a $US1 billion breakup fee as part of the buyout agreement, though it appears Twitter CEO Parag Agrawal and the company are settling in for a legal fight to force the sale. Morningstar analyst Ali Mogharabi noted that, regarding the spam user count Musk is so focused on, Twitter has "for years explicitly stated in regulatory filings that the 'below 5 per cent' spam count may not be accurate given that it is based on a sample and requires a lot of judgment."

Tech industry analysts say Musk's interlude leaves behind a more vulnerable company with demoralised employees.

 

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