Twitter's stock incurred sharp losses in pre-opening trading on the New York Stock Exchange, after Elon Musk announced his intention to end his acquisition of the company in a deal valued at $44 billion.

Twitter's shares fell by about 9%, before reducing some of its losses to be traded down by about 7%, while Tesla's stock rose by about 1%.

On Friday, Musk's lawyers informed Twitter's board of his desire to cancel the deal.

Elon Musk has threatened to block the deal unless the company provides evidence that the fake accounts are less than five percent of users who see ads on the social media service.

Twitter Chairman Brett Taylor said the board intends to pursue legal action to enforce the merger agreement.

The Twitter Board wrote that it is committed to closing the deal at the price and terms agreed with Mr. Musk....

Musk's cancellation of the $44 billion deal he signed in April opens the door to a legal battle with the San Francisco-based company, over fees to break the deal, which could reach $1 billion and more.

Musk's lawyers said in a Twitter message, a copy of which was sent to the US Securities and Exchange Commission, that Mr. Musk is exercising his right to cancel the agreement and abandon the deal.

In a related context, the founder of the research company for Radio Free Mobile, Richard Windsor, believes that the American technology sector has been subjected to great pressure over the past two months, adding that the market value of tension under the current conditions is supposed to not exceed The value of the company is now 15 billion dollars, while the value of the company is now about 28 billion dollars.