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Musk-Twitter Takeover Drama Takes Another Turn With Town Hall Meeting – Investor's Business Daily

Twitter (TWTR) shareholders are expected to have a better idea of whether Tesla (TSLA) Chief Executive Elon Musk will forge ahead with his acquisition of the social media firm after a virtual town hall meeting set for Thursday. The constantly evolving drama continues to play out amid an intensifying bear market, which is taking a toll on both Twitter and TSLA stock.


With Musk’s conference call with Twitter employees under way at 12:40 eastern time on Thursday, Twitter stock edged up. TSLA stock fell on a report it has increased prices on U.S. models of its electric cars.

“This clearly is not the “cookie cutter” typical all-hands meeting as this global soap opera between Musk and Twitter has taken many twists and turns since the landmark deal was first announced (in April),” Wedbush analyst Daniel Ives said in a note to clients, prior to the meeting.

Will Musk Lower Bid For Twitter Stock?

The Musk Twitter drama has many possible outcomes. Musk has threatened to pull out of the deal. He claims spam accounts on Twitter could be much higher than the company says.

But some analysts believe Musk aims for leverage to lower his $44 billion offer for Twitter stock.

“In terms of the deal itself, we believe $54.20 (a share)/$44 billion is essentially out the window at this point and is reflected in Twitter’s current stock price/deal spread as the Street views a clear renegotiation of the current deal likely in the cards on the fake account issue,” added Ives.

A court battle is also possible over a $1 billion fee for Musk if he backs out.

Twitter stock edged up 0.4% to 38.20 on the stock market today. Tesla stock slipped 6.5% to 653.50.

TSLA Stock Falls Amid Bear Market

TSLA stock has retreated 34% in 2022 amid the bear market in technology stocks. Musk has backed away from plans to borrow against TSLA stock to finance the acquisition.

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IBD offers a broad range of growth stock lists, such as Leaderboard. Investors also can create watch lists for issues such as Twitter stock and TSLA stock, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.


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