Elon Musk’s proposed Twitter, Inc. TWTR takeover has gone through several twists and turns, and the latest development in the saga is the looming litigation between the two parties.
Despite Musk pulling out of the deal, blaming the action on bot accounts, he may be still interested in buying Twitter, Future Fund founder and Tesla bull Gary Black said on Monday.
Black based his argument on a tweet by Musk that suggested that Twitter could evolve as a neutral news source. While lamenting the strong negative bias of media and its obsession with clicks, Musk said it is hard to find a news source that’s “accurate, relevant and not totally depressing."
“Old-school version of the Economists & Jon Stewart Daily Show/Colbert Report were great,” he added.
In wishful thinking, the Tesla, Inc. TSLA CEO went on to say, “Maybe Twitter can become that.”
In addition, hedge fund Greenlight Capital’s David Einhorn has reportedly taken a stake in Twitter by paying a price of $37.24 on average for the stock, Reuters reported, citing a letter to shareholders. The hedge fund manager also suggested that the Delaware Court can save itself from many “future buyers’ remorse suits” by enforcing Musk’s taking-private deal for Twitter.
Black noted that Einhorn sees 95% of the deal going through.
A Negative For Tesla: Musk’s interest in Twitter is a negative for Tesla since the overhang continues, Black said. Shorts continue to suggest Musk may have to sell far more Tesla shares than Future Funds analysis, he said.
The firm estimates that Musk may have to sell $9.2 billion worth of shares at $54.20.
Price Action: Tesla closed Monday’s session down modestly at $891.83, according to Benzinga Pro data.
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