The title of the company ended at 32.65 dollars on the New York Stock Exchange, 40% less than what the multi-billionaire had offered when he announced his intention to get his hands on Twitter in mid-April.

The board of directors of the social network, which initially had no plans to sell at all, accepted his offer a few days later.

But after several months of twists and turns, Mr. Musk let it be known in a letter to Twitter on Friday that he was terminating this agreement, considering that the company had not respected its commitments by not communicating the share of fake accounts and of spam.

Twitter claims that the number of inauthentic accounts on its platform is less than 5%, a figure disputed by the multi-billionaire who considers it much higher.

To justify his renunciation, Mr. Musk also invokes several recent decisions by Twitter such as the recruitment freeze, contrary to his obligation for the company to continue to operate normally.

The reasons given by the entrepreneur do not legally justify a breach of contract, however, several specialists argue.

The two sides are now engaged in a legal tussle, which could cost Mr. Musk a few billion dollars if he loses.

According to several American media, Twitter has joined the services of the New York law firm Wachtell, Lipton, Rosen & Katz.

This same firm had represented the Californian group just after Mr. Musk's offer in April, when the board of directors had initially chosen to resist the project before submitting to it.

Asked by AFP, Twitter declined to comment.

Reputational risks

For his part, Mr. Musk shared his first reaction on Twitter on Monday since the announcement of his withdrawal by posting an image containing several photos where he appears hilarious.

"They said I couldn't buy Twitter. Then they refused to reveal fake account information. Now they want to force me to buy Twitter in court. Now they have to reveal fake account information," can we read next to each shot.

Businessman Elon Musk in Vancouver, Canada on April 14, 2022 Ryan Lash TED Conferences, LLC/AFP/Archives

He soon after posted a photo of actor Chuck Norris winning at chess, simply accompanied by the phrase "Chuckmate", a pun on "checkmate" and the actor's name.

Wedbush Securities' Dan Ives said: "This is an 'extremely dangerous' situation for Twitter and its board as the company takes on Musk in a Game of Thrones-style legal battle to salvage the deal. or recover at least the $1 billion severance pay."

"We do not see any other bidders standing out at this time as the legal proceedings are about to begin in court," adds the analyst.

Morningstar analyst Ali Mogharabi, however, believes that at the level the stock is currently trading, "other parties may be interested in Twitter."

There is always the scenario where Elon Musk ends up buying the site, but at a renegotiated lower price, he adds in a note.

Without going into the outcome of the legal battle, analysts from the rating agency S&P Global Ratings note that in any case, this "increases the uncertainty and reputational risks" of the platform.

The slowdown in economic growth was expected to "significantly affect advertising revenue" from Twitter, which constitutes about 90% of its turnover, they also argue.

They plan to lower Twitter's rating by one or more notches if the transaction is confirmed at the original price or if it is canceled.

On the other hand, they could decide to leave it at its current level if the two parties reach an agreement and that the reputation of the social network, both with its users and advertisers, is not too damaged.

© 2022 AFP