Twitter campaign kicked off Wednesday after the alternative fund (hedge fund) Hindenburg Research revealed it had taken a stake in the social network’s capital, convinced the platform was a “sturdy suitcase” triumph in court against Elon Musk. At around 17:20 GMT, the title gained 8.10% to $36.82.
Asked by AFP, Hindenburg Research founder Nathan Anderson confirmed that his company had taken a stake in Twitter. “significantly, but below the 5% threshold”, from which an investor must report to the Market Regulatory Authority (SEC). Mr. Anderson said this was a first for Hindenburg, who had never made a public statement of a long position before, as the company is quite known for its low stakes on several titles. For the financial, Twitter has a “sturdy suitcase” in his lawsuit, which began Tuesday in a Delaware, eastern United States, court that seeks to force Elon Musk to honor his commitment to buy the social network.
Also read => Twitter takes legal action against Musk: “With this case, the Tesla boss has alienated the entire economic planet”
More leverage than Elon Musk
The platform’s leaders accuse the multifaceted entrepreneur of abandoning this acquisition for deceptive reasons. So, Elon Musk has argued that Twitter minimized spam messages on the network and failed to provide him with enough data on inauthentic accounts, which the company disputes.
“The Subject of Bots”these automated accounts that are not maintained by an individual user, “is arguably the worst excuse Musk could have chosen to end this transaction knowing that this was clearly the reason he signed up in the first place”according to Mr. Anderson.
So, a few days after the launch of a takeover bid, in mid-April, the man who heads the manufacturer Tesla had assured that once the takeover was completed, he would “would beat spam” or fight them? “till the end”.
For Nathan Anderson, Twitter has: “more leverage” that his opponent in these proceedings, “knowing the potential threat to the Musk empire in the event of a clear victory”of the social network.
“The market views this lawsuit as ‘very strong'”Wedbush Securities analyst Dan Ives noted in a note. “The move now includes a significant chance that Musk will eventually have to agree to pay significantly more than $1 billion” – the cancellation fee 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”the analyst explained.