Twitter Inc shares traded lower by 4 percent on Monday, well off the $54.20 per-share buyout price Tesla Inc CEO Elon Musk has agreed to pay to take Twitter private.
In a new report, short-seller Hindenburg Research said there’s plenty of reason for investors to be skeptical of the Musk buyout.
Changing Circumstances
Hindenburg said there are several factors that suggest Musk is not getting the value for Twitter that he was on April 14 when he announced his offer.
Since that time, the Nasdaq has fallen more than 17.6 percent as a sharp sell-off in tech stocks has accelerated. Meanwhile, Twitter reported weak first-quarter results and disclosed it had overstated its user count just three days after accepting Musk’s offer.
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