Twitter loses all the profits obtained after learning that Musk had shares – El Financiero

Twitter shares fell again this Monday and, incidentally, lost all the profits they had made since Elon Musk revealed his involvement on the social media platform.

Shares of the San Francisco-based company fell 8.18 percent to $37.39, its seventh consecutive decline. The shares thus ended below the closing price of $39.31 on April 1, the last session before Musk revealed his 9 percent stake in the company.

Musk, what is an avid Twitter user with more than 93 million followers, made an offer to take the company private for $54.20 a share last month, but uncertainty around the deal, fueled in part by Musk’s comments, has weighed on stocks and raised questions. about whether the purchase will finally be completed.

On Monday, Musk suggested a viable deal at a lower price would not be “out of the question,” adding to speculation that he might try to renegotiate his takeover.

“The stock price is telling you that the deal is in deep trouble,” said Steve Sosnick, chief strategist at Interactive Brokers. “If the deal was healthy, there would be no reason for it to be negotiated at a 40 percent discount on the offer price. The price imputes a very low probability that the deal will be done at $54.20 and suggests it might fall apart“.

The gap between Musk’s purchase price and market value, an indicator of confidence in whether the deal will close, widened at a record $16.81 Monday.

On Friday, Musk took to the platform to claim that his offer was “temporarily on hold” as he gathered data on the number of fake accounts on the social media platform. He later said that he was “still committed” to the deal. The stock closed down 9.7 percent that day, his worst session since Oct. 27.

Sosnick considered the fact that Musk was talking about bots to be a sign of ‘buyer’s remorse’, comparing it to “knowing a house has mold, but then signing the lease without a home inspection.” He suggested that Musk is trying to lower the price of the deal.

Twitter CEO Parag Agrawal sent out a series of tweets Monday detailing the company’s efforts to identify and remove Twitter accounts. spam and said that it is not possible to make external estimates.

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