Elon Musk has agreed to buy Twitter for $44 billion. However, it has not officially become his because he still has to go through the regulatory process, you could say he has lost. Why is that?
As a company that has been listed on the stock exchange, Twitter's valuation can fluctuate according to the movement of its shares based on market sentiment. Now Twitter's stock price has fallen almost 13% today compared to the end of last April.
At the close of the stock exchange on Thursday (12/5) United States time, Twitter's share price was USD 45.08, while Elon Musk bought USD 54.20 per share. So, there has been a decrease in value of more than USD 9 billion although there is a possibility of an increase again.
Even though Twitter management has agreed with Elon Musk's purchase proposal, it will still take months for the process to be completed. Even then, there is still the possibility of Elon Musk canceling Twitter for one reason or another.
Currently, Elon Musk's proposed purchase of Twitter is being analyzed by authorities at the Federal Trade Commission or FTC. So what are the chances of Elon Musk getting Twitter?
Dan Ives, an analyst at Wedbush Securities, believes there is a 90% or more chance of Elon Musk getting on Twitter smoothly. Regarding the current decline in stock prices, Ives believes that there are several reasons behind it.
The first is that investors may worry that Elon Musk's purchase of Twitter is not going smoothly. Then, how Elon financed the purchase is also a concern in itself.
For example by selling Tesla shares. "This purchase by Elon Musk is kind of a soap opera. The process will go through several different stages," Ives said, quoted by CNBC.
