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• Hindenburg warned Twitter’s lawsuit against Musk could pose a threat to Tesla and SpaceX
Twitter Inc (NYSE: TWTR) shares jumped as much as 7.5% on Wednesday after short-seller firm Hindenburg Research said it has taken a “long position” in the social-media company after it sued Tesla Inc (NASDAQ: TSLA) Chief Executive Elon Musk.
Hindenburg didn’t give any details on how many shares it has bought.
The company said in a tweet, “We have accumulated a significant long position in shares of Twitter. Twitter’s complaint poses a credible threat to Musk’s empire.”
Musk on Friday said he was terminating the $44 billion deal because Twitter violated the agreement by failing to respond to requests for data regarding spam accounts on the platform.
However, shares of Twitter jumped a day after the company sued Musk for terminating the deal and asked a Delaware court to order him to complete the merger at the agreed $54.20 per Twitter share.
Although Hindenburg warned the social media firm’s lawsuit against Musk could pose a threat to his companies, the short-seller firm did not elaborate on the threat.
Hindenburg, earlier in May, had a short position against Twitter, saying that Musk’s offer could get repriced lower if the billionaire walked away from the deal.
Picture Credit: BBC
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