Musk Strategically Delayed The Disclosure Of His Stake In Twitter, Which Was Investigated By The SEC And FTC

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According to wccftech, there has been a new turning point in the seemingly endless legend of Elon Musk's Twitter acquisition offer, and now there is a thrilling suspense Musk disclosed his initial 9.2% stake in twitter on April 4 - about 10 days after exceeding the 5% share disclosure threshold The Hart Scott rodino Act stipulates that when any individual or entity acquires at least 5% of the shares of a listed company, it must be disclosed in time.

Meanwhile, musk was also sued by twitter investors for delaying the disclosure of his more than 5% stake in the social media giant beyond the specified time frame.

The Federal Trade Commission (FTC) and the securities and Exchange Commission (SEC) are currently investigating Musk's strategic delay in submitting the necessary documents, which may save him millions of dollars because investors are still unaware of his twitter related ambitions.

In mid April, musk proposed to spend $43 billion to privatize twitter. In addition, once the transaction is financially settled, Tesla's CEO is also expected to serve as the interim CEO of the social media giant.

Hindenburg research, a short agency, disclosed its short position on twitter earlier this week on the grounds that the valuation issue, Musk's strong negotiation ability and the impact of the transaction on Tesla's share price led to the transaction being renegotiated or even abandoned.

Most importantly, Hindenburg research believes that if the transaction is carried out in its current form, when the acquisition is completed, Twitter's leverage will be as high as 8.6 times its EBITDA. This will make Twitter's financial health recovery more challenging.

Therefore, research institutions bet on the renegotiation of the transaction, and musk can use its huge leverage to negotiate more actively with Twitter's board of directors. According to Hindenburg research, Twitter's fair value is currently about $31.4. This means that Musk's current purchase price of $54.2 is overvalued by 72%.

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