Elon Musk’s attempt to terminate his Twitter acquisition will likely force the social network into a protracted legal battle and send its stock price diving — thrusting a new level of chaos upon the firm after months of public disputes have battered its reputation and employee morale.
In short? “This was worst case scenario for Twitter, and now it’s happened,” said Dan Ives, the managing director and senior equity research analyst covering the tech sector at Wedbush Securities.
Ives warned that Musk’s bid to walk away may make the company appear to be “damaged goods” in the eyes of other investors or potential acquirers. Twitter shares were down nearly 6 percent in after hours trading on Friday. Wedbush Securities projects the stock could sink to between $25 and $30 when the market reopens Monday, down more than 30 percent from where it closed Friday afternoon before Musk’s filing.
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