Many investors are skeptical about whether Elon Musk will eventually take over Twitter for $ 44 billion. A few days after agreeing to sell to Elon Musk, Twitter recorded a profit of 2022 million in the first quarter of 513. $ and $ 1,2 billion in revenue from $ 1,04 billion in the same period last year, up 16%. At the same time, social media users increased daily to 229 million from 217 million, exceeding analysts' expectations. It is noted that this is one of the latest announcements of the company as a listed company. Twitter, meanwhile, rose 0,9 percent to $ 49,07 after the results were announced. It is recalled that a few days ago Tesla's share fell more than 12% due to investor concerns that Musk may sell some of its shares to finance the acquisition of the social media.
According to a Reuters report, investors fear that Musk may not have the necessary financial liquidity to finance the $ 21 billion (19,93 billion euros) he has to pay through equity. The Reuters report states that Musk has retreated in the past, creating a climate of uncertainty about his intentions and for Tesla. In particular, in 2018, Musk had announced on Twitter that he had secured $ 72 billion in funding to make Tesla unlisted, something that ultimately did not go ahead. On the other hand, he will pay a fairly small amount as compensation, compared to the size of his fortune, in the event that the agreement for the acquisition of Twitter does not go ahead. That's $ 1 billion, when Forbes estimates his fortune is $ 240 billion. , said Chris Poultz, manager of Kellner Capital.
The price of Twitter shares in New York fell by 2,1%, before the announcement of the results and was at $ 48,68 (46,20 euros), much lower than the price of the acquisition agreement at $ 54,20 ( 51,44 euros). An opinion article published in the news agency (Reuters Breakingviews) by Lauren Silva Laughlin and Gina Chon argues that Elon Musk may not buy Twitter in the end. According to the article, four years ago Elon Musk pledged to set up a company to buy the iconic US patisserie series See's Candies by renowned major investor Warren Buffett. But then he changed his mind. So it would not be surprising if the same thing happened with the $ 44 billion deal to buy Twitter, the authors comment. There are a number of good reasons why Elon Musk may be falling behind. Tesla shares have lost a fifth of their value since Musk revealed the purchase of a stake in Twitter, in part because he can sell shares to fund his new takeover.