24.5 C
New York

Twitter share price tanks 17% in pre-market as Musk tweets Twitter deal ‘temporarily’ on hold

Published:

Earlier, after buying around 9 per cent of Twitter stock, Elon Musk had delivered a non-binding proposal to Twitter in order to acquire all of the outstanding Common Stock.

Share price of Twitter is showing extreme weakness ahead of Friday’s market opening. The Twitter stock price was down by almost 25 per cent at one point of time in the pre market hours on Nasdaq but later looked settled at around 17 per cent lower than previous close. The impact on share price is being attributed to the latest tweet of Elon Musk. In a recent tweet, Elon Musk wrote – “Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users”.

Currently, Twitter is trading at around $37 and is down by over 12 per cent in the last 1-year period. Tesla share price was quoting nearly 5 per cent higher in the pre market.

Earlier, after buying around 9 per cent of Twitter stock, Elon Musk had delivered a non-binding proposal to Twitter in order to acquire all of the outstanding Common Stock for all cash consideration valuing the Common Stock at $54.20 per share in a deal valued at about $43 billion. Once the deal would have been completed, Twitter would have become a privately-held company.

Musk had secured $25.5 billion of fully committed debt and margin loan financing and is providing an approximately $21.0 billion equity commitment. There were no financing conditions to the closing of the transaction. 

Related articles

Recent articles

spot_img