Musk's $44B Twitter deal at risk of being repriced lower, short-seller Hindenburg says
Hindenburg said Twitter’s share would drop 50% if Musk walks away from the deal
By Arghyadeep Dutta
Published - May 09, 2022, 04:57 PM ET
Last Updated - Feb 26, 2024, 02:34 PM EST
Twitter’s position has deteriorated since Musk’s proposal due to overall weak market and lower than expected earnings report
Short-seller Hindenburg Research on Monday warned that Elon Musk's $44-billion offer to take Twitter Inc (NYSE: TWTR) private could get repriced lower if the billionaire plans to walk away from the deal.
"Musk holds all the cards here," the firm said in a report. "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 said it has a short position on Twitter.
