Elon Musk Calls Prospect of Getting Twitter for Less Money Than Agreed to After Market Selloff ‘Interesting’

A new report from Hindenburg Research suggests that Elon Musk “Holds all the cards” and that they “See a significant risk that the Twitter Deal gets repriced lower.”

The report listed three key developments that have developed since Musk agreed to the deal with Twitter, including a market selloff that has particularly hit tech stocks.

Musk responded to the report in a reply to a tweet from Hindenburg Research, “Interesting. Don’t forget to look on the bright side of life sometimes!”

Hindenburg Research then responded, “We’re optimists. We think you get this done. Just at a more reasonable price. Your existing $TSLA shareholders will thank you.”

We're optimists. We think you get this done. Just at a more reasonable price.

Your existing $TSLA shareholders will thank you.

— Hindenburg Research (@HindenburgRes) May 9, 2022

According to the report, Musk’s disclosure of his initial Twitter position preceded a broad meltdown in tech stocks.

The Nasdaq composite has plummeted by over 17.6% since the closing price prior to Musk’s disclosure of his initial 9.2% stake on April 4.

On the other hand, Twitter has outperformed the Nasdaq by over 43% since Musk disclosed his initial position, which sets the stock up for a material downside reversion should he

Just 3 days after Twitter announced it had accepted Musk’s bid on April 25, it reported weak earnings, where it disclosed its slowest revenue growth in six quarters, which missed estimates, and an overstatement of its daily active user count.

Twitter acknowledged in the report that it had overcounted about 1.9 million global users in Q4 2021, which is roughly 0.88% of its total user base.

That admission came barely 4 months after a recent $809 million securities fraud settlement by Twitter over past issues relating to overstatement of users.

Elon Musk has also stated that he will sell his 9.2% stake in the company, should the deal fall through, the report noted as well, which puts him in a good position, especially considering the market decline.