San Francisco | Reuters: The stock market took the view for the first time on Tuesday that it was unlikely that Elon Musk will acquire Twitter for USD44 billion (roughly Rs. 3,37,465 crore), as he originally agreed.
The implied probability of the deal closing at that price fell below 50 percent when Twitter shares hit USD 46.75 (roughly Rs. 3,600), based on the USD 54.20 (roughly Rs. 4,180) deal price and Twitter's shares having closed at USD 39.31 (roughly Rs. 3,000) on April 1, the last trading day before Musk revealed he had amassed a stake in the social media company.
Twitter shares fell as much as 3 percent to touch a low of USD46.50 (roughly Rs. 3,500) in afternoon trading.
Musk, the world's richest person and also the chief executive of electric car maker Tesla, on April 25 clinched a deal to buy the social media platform. Twitter said at the time that Musk secured USD 25.5 billion (roughly Rs. 197 crore) of debt and margin loan financing and was providing a USD 21 billion (roughly Rs. 162 crore) equity commitment.
Musk, who is worth USD 268 billion (roughly Rs. 20,709,03 crore) according to Forbes, had said he was not primarily concerned with the economics of Twitter.
"Having a public platform that is maximally trusted and broadly inclusive is extremely important to the future of civilization. I don't care about the economics at all," he said in a recent public talk.
Posted By: Ashita Singh