Twitter ( NYSE: TWTR ) shares got a lift Wednesday, and rose more than 6% as Hindenburg Research said it has taken a "long position" in the social-media company after it sued Tesla ( TSLA ) Chief Executive Elon Musk.
Hindenburg, known as a stock short seller, didn't give too many details of its acquisition. 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."
Late Tuesday, Twitter ( TWTR ) filed suit against Musk in an effort to force him to adhere to the terms of his $44B acquisition of the company. On Friday, Musk said he was terminating the deal, which had been approved by Twitter's ( TWTR ) board of directors, due to concerns about the number of fake, spam and bot accounts on the site.
Wedbush Securities analyst Dan Ives said that there should be a "Game of Thrones" battle should Twitter ( TWTR ) and Musk end up in court, with the fake account issue being "front and center."
Ives said that based on initial reaction to Twitter's ( TWTR ) suit, Wall Street and legal experts "view Twitter as having a strong iron fist upper hand heading into the Delaware court battle after months of this fiasco and nightmare playing out since April."
Meanwhile, some analysts have said that Twitter's ( TWTR ) stock price could be headed for a fall if Musk's acquisition doesn't go through .
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Twitter rises 6% as Hindenburg takes a 'long position' in company's shares