Tesla Inc TSLA CEO Elon Musk announced an intention to acquire Twitter Inc TWTR for around $43 billion, or $54.20 per share, which represents a 38% premium “from his position being publicly announced,” according to CFRA.
The Twitter Analyst: Angelo Zino downgraded Twitter from Buy to Hold, while keeping the price target unchanged at $55.
The Twitter Thesis: Elon Musk indicated his offer is “best and final” and that he would reconsider his position as a shareholder, if the offer is not accepted.
“We are not surprised by Musk's intent to fully acquire the company after rejecting an offer to join the Board, which would have handcuffed him from doing so…Musk believes that he would be more effective in driving change at TWTR, aiming for it to be the platform to drive free speech,” the analyst wrote.
See Also: Does Elon Musk Actually Want To Buy Twitter? 'Maybe This Is All A Joke'
“We think the offer price should be viewed as enticing to shareholders and will be difficult to reject. If rejected, we fear Musk could walk away rather than raise his offer (we take him for his word), which would likely drive shares considerably lower,” he added.
TWTR Price Action: Shares of Twitter had risen by 3.54% to $47.48 at the time of publication, according to Benzinga Pro.
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