Takeover of Twitter by Elon Musk: why Wall Street doubts that the billionaire will finalize the operation

Doubt is setting in on Wall Street regarding the final takeover of the social network Twitter by Elon Musk, current owner of Tesla and SpaceX. The American billionaire had become the majority shareholder of the platform on April 4, by taking a 9.2% stake in the capital of the company, for an estimated value of 2.9 billion dollars (i.e. 2.6 billion euros). euros). Three weeks later, the board of directors had sealed the agreement between the two parties.

Elon Musk has yet to finalize the takeover. “The costs in case of breaking the agreement are only a billion dollars”explains to AFP Scott Galloway, professor of marketing at New York University. “Elon Musk did not buy Twitter, but a buyout option at 44 billion (…). I don’t think he will activate this option”. The billionaire claims, however, to have secured 46.5 billion dollars: 21 billion of his personal fortune and two bank loans from Morgan Stanley. But “there are still many uncertainties surrounding the operation”develops Scott Kessler, analyst at Third Bridge.


Leave a Comment