Update (0750ET): Twitter shares are bouncing back now that Musk has clarified that the deal saga isn’t over yet: on the contrary, Musk just clarified that he is “still committed to the acquisition”.
Two weeks ago, after Twitter reported disappointing earnings and admitted that it was “overestimating” millions of users since 2019, we asked whether this “merits a purchase price adjustment.”
A few days later, noted short-seller Hindenburg Research picked up on this and in a report warned that Twitter is overpriced and that there is “significant risk” that the deal could get repriced lower.
Fast forward to today, when amid growing speculation that Elon Musk’s deal to buy Twitter might collapse, that he might walk away, or hold out for a better price, as the recent turmoil in markets – especially for tech stocks – have caused equity valuations to re-rate lower en masse, Musk has confirmed just that on Twitter…
To read more visit Zero Hedge.
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