Elon Musk: "Twitter Deal Pending"

After Elon Musk's reservations about the plan to buy the social media behemoth Twitter were brought up, Twitter's market valuation dropped to $ 9 billion below the price at which Elon Musk purchased the company.

In a statement on Twitter, one of the popular social media platforms, Elon Musk stated that the Twitter deal was temporarily suspended due to "expected details about the calculation that spam and fake accounts account for less than 5% of total users." After the announcement, Twitter shares are down nearly 13 percent since testing their yearly high at the end of April. With the market close on Thursday, Twitter shares were trading at $45.08, while the stock price was $54.20 on April 27, when Musk agreed to pay. Twitter's board approved the acquisition; However, it could take months for the deal to be finalized and there is no guarantee that it will happen. For this reason, Twitter's market value has fallen to a level of $ 9 billion below the price that Elon Musk bought. It was noted that Elon Musk, the CEO of Tesla, which has a fortune of more than $ 220 billion, will have to pay a separation fee of $ 1 billion if he abandons the deal. "The market is less confident that the deal will happen due to regulatory challenges," Evercore ISI analyst Mark Mahaney said via email, adding that it was a "very quick interpretation" of the stock move. Wedbush Securities analyst Dan Ives stated that the deal with Musk is 90 percent or more likely to be completed, but there are 3 things that put pressure on the price. "The actions of the regulators cast a shadow over the deal. Finally, Musk's financing of the acquisition, partially using Tesla shares, creates greater risk and uncertainty."