almost 2 years ago • 1 min
Question: “Why are Twitter's shares still worth less than the $54.20 per share that Elon Musk agreed to buy the company for?”
Answer: “While it's true that the deal was agreed at that price, it isn’t done until it’s done – and that isn't expected to happen for a good few months yet. The fact that Twitter is trading at around $50 a share rather than $54.20, then, reflects the perceived risk among investors that the deal won’t actually happen. And there’s certainly risk here: the deal still needs to be approved by regulators, and Elon still needs to put his money where his mouth is and come up with the cash.”
Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.