The IT Nerd

When I posted this story last week about Elon Musk putting the deal to buy Twitter on hold while he validates that bots only make up 5% of the platform, I said this:

And he might be committed to the acquisition. But this to me seems that he might be looking for an off ramp.

And Wedbush agrees with that assessment. According to this story, here’s what the influential analyst Dan Ives had to say:

“Our view is while Musk is committed to the deal the massive pressure on Tesla’s stock since the deal, a changing stock market/risk environment the last month, and a number of other financing factors has caused Musk to get ‘cold feet’ on the Twitter deal with the bot issue not a new issue and likely more of a scapegoat to push for a lower price,” Wedbush said.

And:

“And Musk knows that, which is why in a changing market and with Tesla losing ~$300 billion of market cap since the deal we view the $44 billion Twitter deal as having less than a 50% [chance] to get done as of today,” 

And it will cost Musk $1 billion to walk away. So it will be interesting to see if he cuts that cheque. And what doesn’t help matters is this:

Really Elon? That’s not very mature. But that’s what you get when you deal with this guy. Which is why I believe that it’s only a matter of time before Musk finds any excuse to pull the plug on this deal and walk away. But he’s free to prove me wrong. Though I do not think he will do so.

This entry was posted on May 16, 2022 at 3:21 pm and is filed under Commentary with tags Twitter. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.