Twitter’s stock falls below where Elon Musk bought it, turning a $1.1 billion profit into a $40 million loss

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Easy to come, easy to go, as the actions of Twitter Inc. they fell below where Elon Musk bought it, eliminating gains of more than $ 1.1 billion in four weeks.

The shares of the social networking company TWTR,
-5.55%
it sank 6.0% on Tuesday afternoon, to the lowest close since March 16. It has fallen 31.1% since closing at a high of $ 51.70 on April 25, the day Twitter agreed to be acquired by Musk for $ 54.20 a share.

A 13D presentation to the Stock Exchange Commission on April 5 showed that Musk, who is CEO of Tesla Inc. TSLA,
-6.93%
and founder of SpaceX, bought its 73.12 million shares of Twitter, or 9.1% stake, at a weighted average price of $ 36,157, according to an analysis of MarketWatch data.

This means that at the current share price, which is 1.5% below the purchase price, Musk would lose $ 40.7 million in its investment. That compares to a $ 1.14 billion gain at the April 25 closing price of $ 51.70.

FactSet, MarketWatch

Please note that the Twitter purchase agreement includes a $ 1 million breakout rate, which could be paid by Twitter or Musk if the deal fails.

Twitter shares have fallen 17.6% so far, while Tesla shares TSLA,
-6.93%
have fallen 40.8% and the S&P 500 SPX index,
-0.81%
has fallen by 17.5%.



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