Exactly 2 weeks ago we published the news that Elon Musk, the world’s richest person, secured a deal on April 25, agreeing to buy Twitter for $54.20 a share — valuing the firm at roughly $44 billion.
Well, things have changed…
Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of usershttps://t.co/Y2t0QMuuyn— Elon Musk (@elonmusk) May 13, 2022
As Musk continues his fundraising drive to complete his $44 billion Twitter takeover, ongoing market volatility could lead the world’s wealthiest man to renegotiate the deal. Last month Twitter’s board of directors agreed to sell the company to Musk outright for $54.20 a share, with the Tesla CEO selling $8.5 billion worth of shares in the electric-car company for funding. He also received a commitment from Morgan Stanley and other financial institutions for $12.5 billion in margin loans secured against his Tesla stock, an amount he has since reduced to $6.25 billion after lining up around $7 billion in equity from a group of new co-investors.
Since the deal’s announcement, Tesla’s stock has plunged by more than 25% as investors worry that Musk could offload even more of his holdings in the company. Twitter shares have also taken a hit, dropping to $44.05 on Thursday afternoon amid a four-day losing streak. Given that Musk’s offer now sits at $9 billion above Twitter’s current $35 billion market value, investors could buy up Twitter stock at its currently declining rate in the hopes that there will be a $54.20-per-share check waiting for them at the end of the takeover tunnel. But it seems the market does not believe the $44 billion deal will materialize.
When markets closed on Thursday, Twitter was trading at $45.08 a share, its lowest day-end mark since the company’s board agreed to sell the platform to Musk last month. Earlier in the day, the stock dipped as low as $43.33.
So while we are waiting for this story to end somehow, let’s see the public’s reaction to a fresh newsbreak given us by Elon Musk :)
Snoop Dogg jokingly says he might have to buy Twitter as Elon Musk puts the deal on hold
May have 2 buy Twitter now.— Snoop Dogg (@SnoopDogg) May 13, 2022
One of his followers agrees with that scenario.
The most fun we had was while watching The Tonight Show Starring Jimmy Fallon. The comedian commented on the situation with his well-known kindly, sarcastic manner. Time to burst in tears you guys:
Here is one interesting overview on the situation
We eager to know what do you think about this deal. Will it be closed? :)