Twitter could end up costing Elon Musk less than 41 billion euros

Elon Musk’s takeover of Twitter could end up costing him less than the $44 billion he offered last month, according to an investment firm that has bet against the social media giant’s stock.

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Twitter shares have been in free fall for a few hours now as prolific short seller Hindenburg Research released a hard-hitting report on Elon Musk’s takeover strategy. The billionaire originally offered $54.20 per share for the company, bumping the purchase price up to $44 billion. However, this tariff could ultimately be revised downwards.

The founder of short-selling firm Hindenburg Research thinks Musk can clearly strike a deal at this price. However, the $44 billion offer now seems outsized given recent events that have disrupted the US giant’s share price.

Read also : Elon Musk wants to quadruple the number of Twitter users by 2028

Elon Musk could cut Twitter takeover price

According to Hidenburg Research, the deal in its current form is at risk due to several key market developments since Musk’s initial offer on April 14, including a more than 17% drop in the Nasdaq share price. The company also recalls thatin the absence of Musk’s offer, Twitter’s stock price would be around $31.40about 37% lower than Friday’s closing price.

Twitter has outperformed the Nasdaq by around 43% since Musk revealed his initial stance, suggesting a big downside return if Musk backs out of the deal “, can we read in the report.

Hindenburg added that Musk could even afford to pay the billion dollar break fee and that he had the ability to renegotiate if he wanted to at a more affordable rate. Elon Musk may well be the only one to offer that much money for this takeover, Hindenburg noting that the odds for Twitter to receive a better offer are ” extremely weak “. Reacting to the report, the billionaire said on Twitter that he was ” interesting “. He could well push the CEO of Tesla to try a gamble and propose a new offer.

Source: The Guardian

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