Musk takes over twitter in $44 bn deal



After Elon Musk acquired Twitter, Tesla’s shares decreased by 12.2%, media reported.

Days ago the South African billionaire and Twitter made an official announcement of a $44 billion takeover bid over the social network company.

The drop in Tesla shares would equate to a $21bn drop in the value of Musk’s stake in the car-maker – the same as the $21bn in cash he has promised to put towards the Twitter deal. Musk agreed to buy the company on Monday for $54.20 per share in cash.

The gap between his offer and Twitter’s actual share price reflects investor concerns that the decline in Tesla shares – which provide the bulk of Mr Musk’s fortune – could lead him to have second thoughts about buying Twitter.

Amazon founder Jeff Bezos has also asked whether Musk’s deal to buy Twitter will give China “a bit of leverage” over the platform, as Tesla has a big plant in Shanghai.

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