Short-seller Hindenburg has hinted that Elon Musk’s $44 billion Twitter bid could be valued lower if Musk decides to pull out of the deal.<\/p>\n
“Musk holds all the cards here. If Elon Musk’s bid for Twitter disappeared tomorrow, Twitter’s equity would fall by 50% from current levels. Consequently, we see a significant risk that the deal gets repriced Lower,” Hindenburg tweeted in his report.<\/p>\n
Hindenburg said the deal has seen several developments from financing to board approval, which its believes must have weakened Twitter’s position.<\/p>\n
The short-seller noted that Elon Musk could leave the deal by paying the $1 billion transfer fee, which he could renegotiate if he chooses.<\/p>\n
In a light-hearted response, Musk tweeted: “Interesting. Don’t forget to look on the bright side of life sometimes!”<\/p>\n
Hindenburg expressed a strong desire for Musk to take over Twitter, but called for a deal to be done at a “reasonable price.”<\/p>\n
Some critics criticized Musk’s decision to buy Twitter for $44 billion, arguing that the billionaire was paying more for a platform with a weak revenue structure.<\/p>\n