The 5% figure Musk flagged comes from Twitter's first-quarter earnings report, which it released days after reaching the deal to sell the company. "It appears like he's paying more than he needs to pay for this deal." Musk will examine Twitter's estimates of fake accounts "He is giving himself more options and giving himself more leverage," he said. Zino said Musk could be using the question over fake accounts as an excuse to cut his offer price of $54.20 a share. They sign merger agreements so they can do deals," said Donna Hitscherich, a professor at Columbia Business School.
"Generally speaking, people don't sign merger agreements so they can walk away from them. His agreement with Twitter includes a $1 billion break-up fee if he backs out, with few exceptions. The combination of the wider market drop and Tesla's decline "would naturally give an individual like Elon Musk cold feet," said Angelo Zino, analyst at CFRA Research.īut it's not clear that Musk would or could simply walk away from the deal. (He's also brought in other investors including Oracle founder Larry Ellison, the venture capital firm Andreessen Horowitz and Qatar's sovereign wealth fund to help finance the purchase.) Musk is relying on his Tesla stake to help fund his $21 billion portion of the Twitter deal by selling some shares and borrowing against others. Shares in Tesla, which account for the bulk of Musk's wealth, had lost nearly 30% of their value in the last month as of Thursday's close. The drop comes as tech stocks have been battered on Wall Street amid a broader sell-off. Technology Why Twitter is an easy target for outsiders like Elon Musk intent on change
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