Managing director and Senior Equity Research Analyst of the renowned Wall Street firm Wedbush Securities, Daniel Ives, tweeted his views on Elon Musk’s Twitter (TWTR) takeover.
Ives specializes in U.S. listed companies that fall under the Technology sector. His thoughts on the takeover are simple: the technology sector is witnessing a massive sell-off, and Musk has put the deal “on hold” until further clarity on the actual bot size.
Interestingly, Musk has the upper hand and could possibly revalue the offer price to less than $44 billion. Moreover, Ives noted that the Twitter Board has urged shareholders to vote in favor of the inked deal at the shareholders’ meeting, which is scheduled for May 25.
Ives quoted, “$54.20 is out the window we believe… its currently a 60% chance that Musk tries to walk and use this spam account issue as the scapegoat to get out of the deal, 40% chance Twitter’s Board/Musk come to a new deal price. If Musk walks, Board will fight in courts in MMA battle.”
Ives’s tweet resonated with many in the Twitterverse, who shared the same opinion. Several have quoted that at the end, Musk wins the bargaining chip and will walk away with a cheap deal. A few have even replied with their ideal offer price for the deal. Meanwhile, many have stated that if Musk walks away from the deal, then it would be the end of the microblogging site. Few have even quipped that Musk, being a shareholder, should not vote in favor of the deal.
Speculation is rife about the Twitter deal. Notably, TWTR stock is trading far below its offer price of $54.20 and has lost over 25% since the date of Musk’s initial stake disclosure, which simply implies that even shareholders are not too confident about the deal. It remains to be seen what the shareholder meeting holds for Twitter.
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