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Asharq Al-Awsat
Asharq Al-Awsat
Technology
Asharq Al-Awsat

Musk’s $44-Bln Twitter Deal at Risk of Being Repriced Lower - Hindenburg

Founder and CEO of Tesla Motors Elon Musk speaks during a media tour of the Tesla Gigafactory, which will produce batteries for the electric carmaker, in Sparks, Nevada, US July 26, 2016. (Reuters)

Short-seller Hindenburg Research warned on Monday that Elon Musk's $44-billion offer to take Twitter Inc private could get repriced lower if the Silicon Valley billionaire walked away from the deal.

"Musk holds all the cards here," Hindenburg, which has a short position on Twitter, said in a report. "If Elon Musk's bid for Twitter disappeared tomorrow, Twitter's equity would fall by 50% from current levels. Consequently, we see a significant risk that the deal gets repriced lower."

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