In a surprise move, Elon Musk has proposed moving forward with the acquisition of Twitter at the initial offering price of $54.20 per share. This has caused shares of Twitter (NYSE:TWTR) to surge by almost 13%, resulting in the stock being halted.
It would seem that Musk has come to the realization that a legal battle may not be worth the trouble. Indeed, some legal experts have claimed in recent months that the deal would likely go through if it ended up in court.
Tesla (NASDAQ:TSLA) investors don’t appear to be happy about this announcement, as the stock is only up about 1% today after rallying more than 5% prior to the announcement.
Is Twitter Stock a Buy?
As one would expect from an acquisition target, Twitter has a Hold consensus rating based on two Buys and 16 Holds assigned in the past three months. Interestingly, the average TWTR stock price target is $40.49, implying -15.5% downside potential. It’ll be interesting to see if these estimates change in light of the recent news.