Elon Musk may not buy Twitter for agreed $44 billion, investors say

The exchange for the first time on Tuesday took the view that Elon Musk is unlikely to acquire Twitter for $44 billion (approximately Rs.3.37.465 billion) as he originally agreed.

The implied probability of the deal closing at that price fell below 50 percent as Twitter stock touched $46.75 (approximately Rs. 3,600) based on the transaction price of $54.20 (approximately Rs. 4,180) and Twitter shares, which closed at $39.31 (about Rs. 3,000) on April 1, the last day of trading before Musk announced he had bought a stake in the social media company.

Twitter shares fell as much as 3 percent to hit a low of $46.50 (about Rs. 3,500) in afternoon trade.

Musk, the world’s richest person and also CEO of electric car maker Tesla, struck a deal on April 25 to buy the social media platform. Twitter said at the time that Musk had secured $25.5 billion (about Rs.1.97 billion) in debt and margin loan financing and provided a $21 billion (about Rs.1.62 billion) equity commitment.

Musk, who is valued at US$268 billion (about Rs.20,709.03 billion) according to Forbes, had said he wasn’t primarily interested in the economics of Twitter.

“Having a public platform that is maximally trustworthy and comprehensive is extremely important for the future of civilization. I don’t care about profitability at all,” he said in a recent public lecture