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Analysts warn of possible Musk bluff on Twitter purchase

If speculations already existed before the purchase of Twitter, now they are more intense and with a different focus: will Elon Musk really pay the promised US$ 44 billion or is it all the result of a bluff? After all, if the CEO of Tesla and SpaceX backs out of the deal, surely the sale value will decrease.

The alert was issued on Monday (9) by investment research firm Hindenburg Research. According to expert analysis, Musk has all the cards in his hand. Would it be a Royal Straight Flush? This is the biggest play in poker and appears only once every 649,739 hands. Was he playing with the market as he always did at various points along his successful trajectory?

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According to analysis by Hindenburg Research, if Musk’s offer disappears and is no longer part of the deal, Twitter’s value would drop 50% from current levels.

Elon Musk is vying with Jeff BEzos for the title of richest man in the world
And now Jose? Was the $44 billion bid for Twitter a bluff by Musk? There are warnings in the market in this regard. Image: Shutterstock

“Consequently, we see a significant risk that the business will be revalued lower,” the company said in a note.

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Twitter doesn’t speak

When asked about this possible attitude, Twitter declined to comment on the matter. Among the reasons that may encourage the reassessment of the purchase by the richest man in the world would be the fall in the value of microblog shares.

Shares of the social network have fallen, in recent days, about 4%, reaching the value of US$ 47.76 per share. That’s the lowest level since Musk made his offer of $54.20 a share in April, in an offer that was unlikely to be turned down.

The refusal of the offer may be a prerogative of the agreement through the payment of a separation fee in the order of US$ 1 billion, that is, the renegotiation is not ruled out.

However, Musk is a visionary and would hardly take action in this regard. At least that’s the opinion of Angelo Zino, an analyst at CFRA Research.

“Everything indicates that the deal will be closed at the stated offer price, unless Musk changes his mind.” And now, will he change his mind?

Via: Reuters

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