The Conversation: Shareholders are suffering most from Elon Musk’s Twitter feud – here’s why both sides must renegotiate the deal

 

Hamza Mudassir, Lecturer in Strategy at Cambridge Judge Business School, writes about the recent Twitter’s stock fall.

“Elon Musk’s recent highly public back and forth with Twitter has given the market whiplash. Twitter, while initially resisting the tycoon, went on to sign an agreement with him worth US$44 billion (£36.6 billion) in April 2022. The deal placed a 38% premium on Twitter’s then-share price. While the market would expect value to be added on a deal like this, more recent events have pushed the premium up even further. This will not benefit shareholders on either side,” the article says.

Read the full article [theconversation.com]