Musk’s $44 billion Twitter deal susceptible to being repriced decrease, short-seller Hindenburg says

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Elon Musk’s Twitter profile is noticed on a smartphone put on revealed Twitter trademarks on this image representation taken April 28, 2022. REUTERS/Dado Ruvic/Representation

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Might 9 (Reuters) – Brief-seller Hindenburg Analysis warned on Monday that Elon Musk’s $44-billion be offering to take Twitter Inc (TWTR.N) personal may get repriced decrease if the Silicon Valley billionaire walked clear of the deal.

“Musk holds the entire playing cards right here,” Hindenburg, which has a brief place on Twitter, mentioned in a file. “If Elon Musk’s bid for Twitter disappeared the following day, Twitter’s fairness would fall by way of 50% from present ranges. In consequence, we see an important chance that the deal will get repriced decrease.”

Stocks of the social media platform had been down up to 4% amid a broader marketplace decline and touched $47.76, their lowest degree since Musk made his $54.20 in step with proportion be offering in April, calling it “perfect and ultimate”.

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Twitter declined to remark. Tesla Inc (TSLA.O) was once no longer instantly to be had for a remark from its Leader Government Musk.

“We’re supportive of Musk’s efforts to take Twitter personal and notice an important probability the deal will shut at a cheaper price,” Hindenburg mentioned.

The fast-seller mentioned the deal has noticed quite a few traits, from financing to board approval, which can have weakened the corporate’s place.

Hindenburg mentioned Musk may stroll away paying the $1 billion breakup rate and has leverage to renegotiate if he chooses to.

Ultimate month, Twitter secured a $44-billion money deal to promote itself to Musk and gained over $7 billion in investment from high-profile traders, together with Oracle’s co-founder Larry Ellison and Sequoia Capital. learn extra

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Reporting by way of Nivedita Balu in Bengaluru; Modifying by way of Arun Koyyur

Our Requirements: The Thomson Reuters Consider Ideas.

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