Twitter’s shares fall to lowest level since parties announced agreement two days ago
Investors worry that Tesla CEO Elon Musk could abandon his bid to buy Twitter for $44 billion.
Because of these concerns, Twitter’s shares fell to their lowest level since the parties announced they had agreed two days ago. Investors are concerned that Musk may not have the cash to finance the $21 billion he is supposed to cover in cash under the deal, and musk may not want to sell Tesla shares to pay that amount.
Musk has suddenly changed his mind on some issues in the past. Musk, who tweeted in 2018 that he would remove US electric vehicle company Tesla from the stock market with a $72 billion “ready-made fund,” later did not implement that decision.
Musk announced on April 4 that he had a 9.2 percent stake in Twitter, and on April 5 it was announced that he would be taking over the Board of Twitter because he is the company’s largest shareholder. Musk said he looked forward to working with the Twitter CEO and board on April 6, and announced on April 11 that he was resuming to join Twitter’s board of directors. On April 14, Elon Musk offered to pay $54.20 per share in cash to buy the entirety of Twitter.
Tesla lost $126 billion in value
Twitter shares closed down 2.1 percent at $48.68 in U.S. stock market trading yesterday. That share price is well below Musk’s offer to buy for $54.20 per share, pointing to a 62% probability that Musk will complete the deal, according to Reuters calculations.
Tesla shares fell more than 12 percent on Tuesday on concerns that CEO Elon Musk could sell Tesla shares to buy Twitter, losing $126 billion in company market value.
Next I’m buying Coca-Cola to put the cocaine back in
— Elon Musk (@elonmusk) April 28, 2022
Elon Musk has announced his desire to buy another giant brand, this time two days after buying Twitter for $44 billion. Musk announced on Twitter that he wanted to buy Coca-Cola to “put cocaine back” in the drink.
