Elon Musk May Not Purchase Twitter for Agreed $44 Billion, Say Investors

According to investors, the implied probability of the deal closing at that price fell below 50 percent when Twitter shares hit $46.75.

By Reuters | Updated: 11 May 2022 09:51 IST

Elon Musk May Not Purchase Twitter for Agreed $44 Billion, Say Investors

Photo Credit: Reuters

Elon Musk is worth $268 billion (roughly Rs. 20,709,03 crore) according to Forbes

Highlights

Elon Musk agreed to pay $44 billion to acquire Twitter
Twitter shares fell as much as 3 percent in afternoon trading
Musk on April 25 clinched a deal to buy the social media platform

The stock market took the view for the first time on Tuesday that it was unlikely that Elon Musk will acquire Twitter for $44 billion (roughly Rs. 3,37,465 crore), as he originally agreed.

The implied probability of the deal closing at that price fell below 50 percent when Twitter shares hit $46.75 (roughly Rs. 3,600), based on the $54.20 (roughly Rs. 4,180) deal price and Twitter's shares having closed at $39.31 (roughly Rs. 3,000) on April 1, the last trading day before Musk revealed he had amassed a stake in the social media company.

Twitter shares fell as much as 3 percent to touch a low of $46.50 (roughly Rs. 3,500) in afternoon trading.

Musk, the world's richest person and also the chief executive of electric car maker Tesla, on April 25 clinched a deal to buy the social media platform. Twitter said at the time that Musk secured $25.5 billion (roughly Rs. 197 crore) of debt and margin loan financing and was providing a $21 billion (roughly Rs. 162 crore) equity commitment.

Musk, who is worth $268 billion (roughly Rs. 20,709,03 crore) according to Forbes, had said he was not primarily concerned with the economics of Twitter.

"Having a public platform that is maximally trusted and broadly inclusive is extremely important to the future of civilisation. I don't care about the economics at all," he said in a recent public talk.

© Thomson Reuters 2022

How is Alexa faring in India? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.