Q&A: Why Are Twitter's Shares Still Worth Less Than The $54.20 Per Share That Elon Musk Agreed To Buy The Company For?

Q&A: Why Are Twitter's Shares Still Worth Less Than The $54.20 Per Share That Elon Musk Agreed To Buy The Company For?

almost 2 years ago1 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.”

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