Twitter has Elon Musk over a barrel

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Praveen Chawla GuruFocus PremiumPlus Icon May 21, 2022

Even the richest man in the world can start to feel constrained after his wealth has fallen by an astonishing $124 billion since early November.

  • Musk has a legally binding obligation to buy Twitter for $44 billion. But the markets don't believe it's going to happen, with the price of Twitter stock implying a probability of only about 65% that the deal will go through at full price.
  • It won't be easy for Musk to find the cash he needs to buy Twitter — and he can't just walk away and pay the $1 billion breakup fee. Twitter's board would sue, asking a court to require him to pay the agreed-upon $44 billion. A judge would almost certainly side with the board.

Twitter - Now at Huge Discount - GuruFocus.com

Praveen Chawla GuruFocus PremiumPlus Icon May 21, 2022

https://www.gurufocus.com/news/1711610/twitter-now-at-huge-discount-to-deal-price