Hindenburg goes long on Twitter, bets against Musk

Elon Musk’s Twitter profile is seen on a smartphone positioned on printed Twitter logos on this image illustration taken April 28, 2022. REUTERS/Dado Ruvic/Illustration

July 13 (Reuters) – Quick-seller Hindenburg Analysis mentioned on Wednesday it had taken a protracted place in Twitter Inc (TWTR.N) shares, sending the fill up about 8%, a day after the social media agency sued Elon Musk for backing out of his $44 billion deal.

On Tuesday, Twitter sued Musk for violating his $44 billion deal and requested a Delaware court docket to order him to finish the merger on the agreed $54.20 per Twitter share. learn extra

Musk, chief government officer at Tesla Inc and SpaceX head, backed out of the deal on Friday, saying Twitter had violated the settlement by failing to reply to requests for info relating to faux or spam accounts on the platform.

Hindenburg didn’t elaborate on the menace the lawsuit poses to Musk, however authorized specialists have mentioned that from the knowledge that’s public Twitter would seem to have the higher hand. learn extra

“We’ve got amassed a major lengthy place in shares of Twitter. Twitter’s grievance poses a reputable menace to Musk’s empire,” Hindenburg mentioned in a tweet.

Twitter was not instantly out there for a remark.

The authorized face-off is the most recent twist within the months-long saga that started after Musk in April purchased a stake in Twitter and later provided to purchase the corporate.

Then in Could, he put the buyout on maintain till Twitter proved that spam bots account for lower than 5% of its complete customers, whilst he had gathered buyers to fund a portion of his deal.

“We consider Twitter does seem to have the higher hand forward of the beginning of the trial,” CFRA analyst Angelo Zino mentioned, questioning Musk’s motives.

Twitter’s shares rose about 8% to $36.82 in mid-day buying and selling.

Hindenburg, which earlier had a brief place on Twitter, had mentioned in Could that Musk’s supply might get repriced decrease if he walked away from the deal.

Reporting by Nivedita Balu in Bengaluru; Further reporting by Medha Singh, Enhancing by Shinjini Ganguli

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