How Musk’s Twitter Acquisition Plans Rocked Wall Street and Social Media
Elon Musk wears a lot of hats as CEO of Tesla, CEO of SpaceX, and founder of Boring Company and Neuralink.
He is also an active Twitter user. The news that Musk had made a $44 billion offer to buy Twitter and potentially become the social network’s CEO sent shockwaves on Wall Street and social media.
“Forty-four billion is still a headache for a company that I think is probably worth about $30 or $35 billion,” Wedbush analyst Dan Ives told CNBC. “But when you are the richest person in the world, you can do it. And that’s why Twitter investors, when they saw $44 billion, they sipped champagne or drank their favorite alcohol.”
However, the deal could still fall apart. As the current stock market volatility wipes out the tech companies’ million-dollar market cap, Musk said he’s postponing the deal until he has more clarity on how many fake Twitter accounts exist. Analysts believe Musk could use the debate to lower his proposed takeover price by $54 a share now that so much value has been lost from tech stocks in the past few weeks.
And on Friday, Musk finds himself embroiled in a scandal. He took to Twitter to respond to a Business Insider post saying SpaceX paid a flight attendant a $250,000 severance package in connection with a sexual harassment lawsuit against him.
Twitter declined to comment on the allegations and echoed comments made earlier this week that the company’s board remained committed to the original deal with Musk.
Watch the video above to learn more about how Musk’s Twitter bid took shape, how the social network could change under his watch, and what other roadblocks remain that could prevent a deal from closing.