The social-media giant’s shares sank over 11 per cent Monday after the Tesla and SpaceX CEO said he would “abandon” his offer to buy the company. Twitter’s board said it “plans to pursue legal action to enforce the merger agreement.” (The Logic)

Talking point: The legal battle for Twitter’s fate looms. Musk’s lawyers said that Twitter is breaching several parts of their agreement, such as not providing enough disclosure on “spam” accounts and making HR decisions without approval. Twitter board chair Bret Taylor said it is confident Delaware courts will approve the US$44-billion price and terms Musk laid out at the end of April. Lawyers told The New York Times that Twitter likely has the upper hand. Musk, meanwhile, tweeted a meme early Monday saying Twitter will have to disclose its “bot” account figures in court. Any re-negotiation of the deal would come as shares of both Twitter and Tesla, which hold most of Musk’s wealth, have fallen more than 20 per cent and 40 per cent year-to date, respectively. Musk would also have to pay a US$1 billion termination fee.