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What Will Happen to Twitter Stock If Elon Musk Doesn’t Buy It?
If you’re wondering what will happen to Twitter stock, there are many factors to consider. If Elon Musk isn’t interested in buying twitter, he may want to borrow $25.5 billion from banks to pay for a takeover. In addition, he will likely have to pay a $1 billion breakup fee. While Elon Musk’s potential bid isn’t likely to happen anytime soon, it’s a possibility.
Elon Musk may not buy Twitter stock
It seems that Elon Musk may not buy Twitter stock, as he has backed out of a $44 billion deal to do so. Twitter’s board of directors wants to complete the deal on terms agreed upon by Musk and the two companies may have to go to court to reach a solution. However, if the deal is forced, it will likely mean another sale, more leadership changes and uncertainty for years to come. Musk has a history of flouting government regulations, so a judge may be concerned about collateral damage.
Tesla shares have dropped by over $100 billion since Musk announced his plans to acquire Twitter. This may jeopardize financing for the deal. While Tesla has performed very well recently, it is now down about 12 percent from Monday’s closing price. The news has left Tesla shareholders scratching their heads. They wonder if Musk will spend his time changing Twitter after all, and the price of Tesla shares has already dropped dramatically.
Elon Musk borrowing $25.5 billion from banks to pay for takeover
Elon Musk is considering a hostile takeover of Twitter. The billionaire has yet to disclose details of the $21 billion equity funding he secured from banks to pay for the takeover. Analysts have questioned whether Musk would have thrown in the cash himself and private equity firms have stayed away from the battle. The billionaire has kept Twitter advisers on their toes by tweeting obscure information.
The billionaire is using debt to finance his bid, using Tesla shares as collateral. This unprecedented move is risky for the world’s richest person. However, Elon Musk had only six days to secure the loan from Morgan Stanley and the deal was finalized. It’s still unclear how much of the money is being secured by Tesla shares. And even if he could have raised the money himself, it’s unlikely that Twitter shareholders would approve his offer, given the fact that Tesla stock is his primary asset.
Elon Musk’s possible breakup fee of $1 billion
As CEO of Tesla, Elon Musk could sue the social network to get out of his merger agreement by paying a $1 billion breakup fee. If that happens, Twitter could file a lawsuit against Musk to force the deal through. Twitter claims that five percent of the accounts on its site are fake, and could get a court order that requires Musk to close the deal. Despite these ramifications, Musk could choose to walk away rather than pay the $1 billion breakup fee.
But if the deal does not work out or if regulators block the merger, Musk must pay a $1 billion breakup fee. However, he can opt to waive the fee if he chooses to end the Twitter deal on his own. This news has upset some employees who posted memes about the breakup. The news has prompted worries about job security, pay, the ability to work remotely, and the terms of the new agreement.
Price of Twitter stock
When you’re interested in Twitter stock, you’re probably wondering how the company got its start and what makes it so unique. Twitter, Inc. is a technology company based in San Francisco that operates the microblogging and social networking service Twitter. It also operates Vine, a short video app, and Periscope, a livestreaming service. The company is valued at over $4 billion, and has been growing at an unprecedented rate over the past few years.
Among the metrics used to determine the price of Twitter stock is its “price-earnings-to-growth” ratio, which is calculated by dividing Twitter’s current P/E ratio by its growth rate. A lower P/E ratio means the company’s share price is a good buy, while a higher one indicates a bad deal. PEG ratios are more valuable than P/E ratios, as they take into account both growth and profitability. This information is particularly useful when comparing companies that are highly profitable and have rapid growth.
