Musk tweeted on May 13 that the acquisition of twitter was shelved pending a review of the robots on the platform. Investment firm wedbush Securities said Musk's move may be to lower the purchase price or abandon the acquisition. Analyst Dan Ives pointed out that the events on Friday and weekend, including Musk's possible violation of the confidentiality agreement, have "stunned" Wall Street and do not know what will happen next.
"We believe that the acquisition price of $54.20 per share is no longer favored by Wall Street. Musk will either push for a lower transaction price or may give up the acquisition," Ives said in a report
The analyst also believes that although twitter said that garbage robots account for less than 5%, Musk's declared concerns about garbage robots "are clearly working now". Although Jack Dorsey, the former CEO of twitter, has "dealt with most of these problems", the problem of garbage robots is not surprising.
While musk is likely to remain committed to acquiring twitter, changing sentiment in the stock market and risk environment may cause musk to "shrink" and give a lower offer.
Ives said that the grim reality facing Twitter is that no other strategic or financial bidder will reach the deal, and musk is aware of this. This is also the reason why Ives believes that the $44 billion acquisition of Twitter is less than 50% likely to be completed so far, given the changing market and Tesla's loss of about $300 billion in market value since the launch of the offer. Musk is likely to abandon the deal because he only needs to pay a $1 billion "breakup fee".
In addition, Ives pointed out that Twitter's board of directors is in a "difficult situation". If musk does offer a lower price, but the company refuses, Twitter's share price may fall below $30 in the volatile stock market.
As of press time, Twitter's share price fell 4.43% to $38.915, a discount of nearly 30% compared with Musk's offer.