Musk's Acquisition Proposal... Twitter and Tesla Stock Prices Both Decline

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] After Elon Musk, CEO of Tesla, proposed to acquire Twitter, both Tesla and Twitter stocks fell simultaneously on the New York Stock Exchange on the 14th (local time).

On that day, Tesla's stock closed at $985, down 3.66% from the previous session. Twitter's stock closed at $45.08, down 1.68%.

This simultaneous decline is interpreted as market concerns over Musk CEO's push to acquire Twitter. The judgment that it could become a negative factor for Tesla's management spread, especially highlighting the sharp drop in Tesla's stock price. The possibility that Musk CEO might sell Tesla shares to raise funds for the Twitter acquisition also seemed to act as a risk factor for the stock price.

David Trainer, CEO of investment research firm New Constructs, said, "Musk should focus on Tesla and should not waste time trying to acquire Twitter."

In Twitter's case, the market's judgment that Musk CEO's acquisition success is unlikely appeared in the stock price, according to analysis.

The Wall Street Journal (WSJ) reported, "Investors are bewildered by Musk's proposal to buy Twitter," adding, "Shareholders do not support him, and the Twitter board is preparing to barricade." Victoria Skaler, head of investment at Interactive Investor, also evaluated that the market is weighing more on the possibility of the deal falling through than its completion.

The day before, Musk CEO proposed to Twitter management an acquisition price of $54.20 per share. This amounts to a total of $43 billion (approximately 53 trillion won).

On the same day, Musk CEO attended the TED event held in Vancouver, Canada, and regarding whether the Twitter acquisition is possible, he said, "It is not certain," but added, "I have enough wealth, and if possible, I can (acquire it)." He refrained from detailed comments on what he would do if the Twitter board rejects his acquisition proposal. However, when asked if he had a Plan B, he answered, "Yes." Additionally, he added, "I hate losing."

This content was produced with the assistance of AI translation services.