Sighing Musk: "Spent Excessively on Twitter Acquisition... A Company with Great Potential"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Elon Musk, CEO of Tesla, said that he is "spending excessively more money" than the intrinsic value of the social networking service (SNS) Twitter in relation to the acquisition process of the company.

According to Bloomberg News and others on the 19th (local time), Musk made these remarks during a conference call with shareholders after Tesla's third-quarter earnings announcement. The acquisition price is $54.2 per share of Twitter, with the total amount reaching $44 billion (approximately 63 trillion KRW).

CEO Musk declared the termination of the Twitter acquisition deal in July but reversed his decision three months later and proposed to acquire it under the original terms. Recently, the court ordered the completion of the Twitter acquisition by the 28th. Foreign media, citing market experts, reported that Musk might sell $3 billion worth of Tesla shares to raise the shortfall in funds for the Twitter acquisition.

While expressing dissatisfaction with the acquisition price, Musk highly evaluated Twitter's future value. He said, "Twitter has been a withered company for a long time, but I believe it is an asset with incredible potential," and added, "In the long term, Twitter's potential value will be one digit higher than the current figure."

If Musk and Twitter fail to finalize negotiations by the 28th, a trial is scheduled for next month.

Twitter's stock price rose more than 1% in after-hours trading on the day, triggered by Tesla's earnings announcement and Musk's remarks, compared to the closing price.

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