The stock market on Tuesday took the first view that it is unlikely that Elon Musk will buy Twitter for $44 billion (about Rs 3,37,465 crore), as they had originally agreed.
Based on the deal price of $54.20 (approximately Rs 4,180) and Twitter shares closing at $39.31 (approximately Rs 3,000), the close of the deal at that price was when Twitter shares hit $46.75 (approximately Rs 3,600). The estimated probability of occurrence is reduced to less than 50 percent. ) On April 1, Musk revealed that he had amassed a stake in the social media company.
Twitter shares fell by up to 3% to touch a low of $46.50 (about Rs 3,500) in afternoon trade.
Musk, the world’s richest man and chief executive of electric car maker Tesla, signed a deal to buy the social media platform on April 25. Twitter said at the time that Musk had secured $25.5 billion in debt and margin debt financing and was providing an equity commitment of $21 billion (about Rs 162 crore).
According to Forbes, Musk, who is worth $268 billion (about Rs 20,709,03 crore), said he was not primarily concerned with Twitter’s economics.
He said in a recent public speech, “Having a public forum that is most trustworthy and widely inclusive is extremely important for the future of civilization. I don’t care about economics at all.”
© Thomson Reuters 2022