May 10 (Reuters) – The stock market considered for the first time on Tuesday that Elon Musk was unlikely to acquire Twitter Inc (TWTR.N) for $44 billion, as he originally agreed.
The implied probability of the deal closing at that price fell below 50% when Twitter shares hit $46.75, based on the deal price of $54.20 and Twitter shares closed at $39.31 on 1 April, the last trading day before Musk revealed he had amassed a stake in the social media company.
Shares of Twitter fell as much as 3% to hit a low of $46.50 in afternoon trading.
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Musk, the world’s richest person and also CEO of electric carmaker Tesla Inc (TSLA.O), closed a deal on April 25 to buy the social media platform. read more Twitter said at the time that Musk secured $25.5 billion of debt and margin loan financing and was providing a $21 billion capital commitment.
Musk, who is worth $268 billion according to Forbes, had said he wasn’t primarily worried about Twitter’s economics.
“Having a public platform that is highly trusted and widely inclusive is extremely important for the future of civilization. I don’t care about the economy at all,” he said in a recent public address.
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Compiled by the Global Finance & Markets Breaking News Team Edited by Matthew Lewis and Chizu Nomiyama
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