The stock market on Tuesday took the first view that it is unlikely that Elon Musk will buy Twitter for $44 billion (about Rs 3,37,465 crore) as they had originally agreed.
The implied probability of closing the deal at that price fell below 50 percent when Twitter Shares hit $46.75 (approximately Rs 3,600) based on the $54.20 (approximately Rs 4,180) deal price and the last trading day before the Twitter stock closed at $39.31 (approximately Rs 3,000) on April 1. musk He revealed that he had acquired a stake in the social media company.
Twitter shares fell up to 3% to touch a low of $46.50 (about Rs 3,500) in afternoon trade.
Musk, the world’s richest man and also the CEO of the electric car maker Tesla, signed a deal to buy the social media platform on 25 April. Twitter said at the time that Musk had secured $25.5 billion in debt and margin debt financing and was providing an equity commitment of $21 billion (about Rs 162 crore).
According to Forbes, Musk, who is worth $268 billion (about Rs 20,709,03 crore), said he was not primarily concerned with Twitter’s economics.
“Having a public forum that is most credible and widely inclusive is extremely important for the future of civilization. I don’t care about economics at all,” he said in a recent public talk.