Twitter Inc. TWTR

RE:Significant Risk That The Twitter Deal Gets Repriced Lower

[mrbb]

Short-seller Hindenburg Research warned on Monday, May 9, that Elon Musk’s $44-billion offer to take Twitter private could get repriced lower if the Silicon Valley billionaire walked away from the deal.

Well, shorters gonna say what's gonna help their shorts

quote=yanster2419]According to Hindenburg Research:

https://hindenburgresearch.com/twitter/

Musk Holds All The Cards: We See a Significant Risk That The Twitter Deal Gets Repriced Lower

Published on May 9, 2022

Despite the intense public focus on the potential deal between Twitter and Elon Musk, the market seems to have missed a key, developing risk.

On April 14th, Elon Musk disclosed a formal offer to take Twitter private. Twitter’s board examined other options and reportedly considered soliciting other offers, but better competing bids failed to materialize.

After expressing some very brief but very strong hesitation, the board accepted the offer almost immediately, underscoring how Musk’s offer was vastly superior to alternatives for Twitter, including remaining a publicly traded company.

Since the day before Musk disclosed his initial stake in Twitter, multiple developments have weakened the company’s position, threatening the current deal dynamic.

As a result of these developments, we believe that if Elon Musk’s bid for Twitter disappeared tomorrow, Twitter’s equity would fall by 50% from current levels. Consequently, we see a significant risk that the deal gets repriced lower.[/quote]