Twitter never has this lowest-ever share in history. Reuters said that it begins to face downfall since the social media agrees to sell itself to Elon Musk for $44bn. However, Twitter’s shares have crashed to the lowest level to even below 50% simultaneously. The price fell below 50%. The shares dropped below $46.75. If the shares closed at $47.26, it means that the market value would be $36bn.
The hype that Musk lifts Donald Trump’s Twitter account for political significance did not affect the stock. Apparently, the shares follow the wider collapse in the technology stocks. Investors are mostly worried about inflation and the potential of economic slowdown. Based on Hindenburg Research, Musk might be trying to negotiate a lower deal price before closing.
However, Musk hasn’t mentioned yet about the re-opening of negotiations. Plus, his representative refused to give a comment. According to Forbes, Musk has a net worth of nearly $240bn. Although his net worth is high, it is mostly for Tesla Inc shares that he leads. He has raised cash to fund Twitter acquisition.
Musk sold $8.5bn of Tesla shares and withdrew a $12.5bn margin loan secured against his Tesla stock. Just last week he reduced a $6.25bn margin loan after bringing in co-investors. In addition, he announced that he is looking for more funding in a regulatory filing. On the other hand, Musk said that he does not have any concern about economics after purchasing Twitter.
It is quite different from the concern of investors. They believed that the major 27% drop in Tesla happened since Musk revealed his stake, leading him to sell more shares. If he could negotiate a lower acquisition cost, Tesla stock would be under less pressure. Actually, he could threaten to leave the deal but Twitter’s board agrees to reopen negotiations, said Reuters.
