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Shares of social media platform Twitter Inc. (NYSE: TWTR) have fallen drastically below Elon Musk’s purchase price of $54.20.
On Thursday, Twitter was trading at $44 a piece which reflects a $9 billion difference in market value from Musk’s purchase price. The stock has fallen about 12% since reaching its high for the year in late April.
Causes for concern
Dan Ives, an analyst at Wedbush Securities, told CNBC that the stock would only be valued in the $20s if it remained a public company.
He told CNBC that the regulatory issues could cast a shadow over the deal, and Musk’s financing of the acquisition, by partly leveraging his Tesla shares, presented greater risk and uncertainty.
Bloomberg reported on Thursday that Musk is in talks to raise equity and preferred financing to eliminate the need for a $6.25 billion margin loan tied to his Tesla shares.
The company is pausing its hiring this week as two executives are leaving the company, a spokesperson confirmed on Thursday.
Source - Bloomberg, CNBC
Picture Credits: Ticker News
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