Twitter shares sink 7% in premarket trading after Elon Musk terminates $44 billion deal

In this photo illustration, Twitter account of Elon Musk is seen on a smartphone screen and Twitter logo in the background.

Musk said he is trying to erminate his takeover of the company.

The company's shares fell 9% in premarkets before recovering to trade around 7% lower. The stock was up around 1% before the market opened.

The lawyer for Musk told the board that he wanted to cancel the deal. The billionaire believes that the company isn't telling the truth about how much activity on the service is real.

According to the company, it gave Musk the information he needs to assess its claim that less than 5% of daily active users are fake.

Richard Windsor, founder of Radio Free Mobile, said he would sell if he was a shareholder in the social networking site.

Windsor told CNBC that there was still a discrepancy between the fundamentals and the share price.

If you look at where the technology sector has gone over the last couple of months, you could say that it is between $13 billion to $15 billion, which is roughly 50% below where the share price is currently.

The story will be updated soon.