Twitter shares plummet as Musk raises new doubts about acquisition

Illustration by Alex Castro / The Verge

There were new doubts about whether the acquisition of the platform would go through. The share price dropped as much as 14 points below the nominal acquisition price at market open.

A series of confusing statements from Musk caused the drop. Many believe that the real figure is higher than the 5 percent claimed in the filing.

Musk said he was still committed to the acquisition, but uncertainty about the deal has made it difficult to convince people.

Since the terms of the deal were established, there have been significant market shifts for both Musk's personal wealth and that of his company. Since Musk made his offer on April 14th, the stock has dropped more than 25 percent.

The falling share price could affect Musk's ability to close the deal since a portion of the funding was secured against his stake in the company. The need for the loan has been obviated by the recent reporting from Bloomberg that Musk has arranged for new equity partners to assist in financing the deal.

In its most recent earnings, the company announced an overcount of user numbers and continued to operate at a loss. The company's future is in question after CEO Parag Agrawal abruptly fired two senior executives. Some analysts think that Musk might try to negotiate a lower price.

There are complex conditions on when and how a $1 billion fee can be triggered if either party backs out. The total cost of the deal would probably be less than the savings offered by a lower price, even if Musk triggered the fee.

Financial analysts were not sure if Musk's bot concerns had put the deal in jeopardy.

Craig Huber of Huber Research Partners took a different view.