Musk’s Twitter deal at risk of being repriced lower – Hindenburg

Shares of the social media platform were down as much as 4% amid a broader market decline and touched $47.76, their lowest level since Musk made his $54.20 per share offer in April, calling it "best and final".

Elon Musk's Twitter profile is seen on a smartphone placed on printed Twitter logos in this picture illustration taken April 28, 2022. (REUTERS/Illustration/File Photo)

Short-seller Hindenburg Research warned on Monday that Elon Musk’s $44-billion deal to take Twitter Inc private could get repriced lower if the Silicon Valley billionaire walked away from the deal.

“Musk holds all the cards here,” Hindenburg, which has a short position on Twitter, said in a report. “If Elon Musk’s bid for Twitter disappeared tomorrow, Twitter’s equity would fall by 50% from current levels. Consequently, we see a significant risk that the deal gets repriced lower.”

Shares of the social media platform were down as much as 4% amid a broader market decline and touched $47.76, their lowest level since Musk made his $54.20 per share offer in April, calling it “best and final”.

Story continues below this ad

Read | Inside Elon Musk’s big plans for Twitter

Twitter was not immediately available for a comment.

“We are supportive of Musk’s efforts to take Twitter private and see a significant chance the deal will close at a lower price,” Hindenburg said.

The short-seller said the deal has seen a number of developments, from financing to board approval, which could have weakened the company’s position.

Hindenburg said Musk could walk away paying the $1 billion breakup fee and has leverage to renegotiate if he chooses to.

Story continues below this ad

Last month, Twitter secured a $44 billion cash deal to sell itself to Tesla Inc chief executive and received over $7 billion in funding from high-profile investors, including Oracle’s co-foudner Larry Ellison and Sequoia Capital.

Stay updated with the latest - Click here to follow us on Instagram

‘Violence in Nepal is heart-rending’: PM Modi expresses concern as KP Sharma Oli resigns

India2 hr ago

Prime Minister Narendra Modi showed worry about the turmoil in Nepal and stressed the need for peace and stability. The Nepal Army and security officials called for dialogue to restore order amidst growing protests and the resignation of Prime Minister K P Sharma Oli. The Indian government issued a safety advisory for Indian citizens, advising against travel until the situation improves.

View all shorts

Live Blog