Twitter action took off on Wednesday after the alternative fund (hedge fund) Hindenburg Research revealed that it had taken a stake in the capital of the social network, convinced that the platform has a “solid case” to prevail in court against Elon Musk. Around 5:20 p.m. GMT, the title gained 8.10%, to 36.82 dollars.
Asked by AFP, the founder of Hindenburg Research, Nathan Anderson, confirmed that his company had taken a stake in Twitter. “significant, but below the 5% threshold”, from which an investor must report to the market regulation authority (SEC). Mr. Anderson said this was a first for Hindenburg, which had never before made a public statement of a long position, the company being rather known for its low bets on several titles. For the financial, Twitter has a “solid case” in his legal proceedings, which began on Tuesday in a court in Delaware (eastern United States)which aims to force Elon Musk to respect his commitment to buy the social network.
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More leverage than Elon Musk
The leaders of the platform accuse the versatile entrepreneur of having given up on this acquisition for fallacious reasons. Elon Musk has thus argued that Twitter had minimized the number of spam messages on the network and had not provided him with enough data regarding inauthentic accounts, which the company disputes.
“The Subject of Bots”these automated accounts not maintained by an individual user, “is perhaps the worst excuse Musk could have chosen to end this transaction, knowing that this was clearly the reason he had signed up in the first place”selon M. Anderson.
A few days after making a takeover offer, in mid-April, the man who heads the manufacturer Tesla had thus assured that if the acquisition was finalized, he “would defeat spam” or would fight against them “until the end”.
Pour Nathan Anderson, Twitter a “more leverage” that his adversary in this procedure, “knowing the potential threat to the Musk empire in the event of a clear victoryof the social network.
“The market sees this lawsuit as ‘very strong'”commented, in a note, Dan Ives, analyst of Wedbush Securities. “The action now incorporates a significant probability that Musk will ultimately have to agree to pay significantly more than $1 billion” – the termination indemnity provided for in the initial agreement between the entrepreneur and Twitter – “and even the possibility that he will have to buy the company at the expected price”explained the analyst.