Here’s What Wall Street Thinks About Elon Musk’s Bid to Buy Twitter

Here’s What Wall Street Thinks About Elon Musk’s Bid to Buy Twitter

In most cases, news that a company could be bought out at a price higher than its market value sends investors into a buying frenzy that rackets up the company’s share price. But that wasn’t exactly the case for Twitter on Thursday.



The company’s stock fell almost 2% during regular trading on the day that Elon Musk offered to buy the social media platform for $43 billion—roughly $7 billion more than its current market valuation.











The lack of support from investors is one of the reasons Wall Street analysts are skeptical that Twitter’s board of directors would accept the offer. It could be a sign that investors are underwhelmed with Musk’s bid, particularly over concerns as to how he would finance it. By Thursday afternoon, a flurry of investment firms began advising clients to sell their Twitter shares.



Those concerns rang true Friday morning, when Twitter unanimously adopted a type of shareholder rights plan often referred to as a “poison pill,” aimed at making it harder for Musk to take over the company. The defense tactic allows shareholders to acquire more shares of the company at a relatively inexpensive price, effectively diluting Musk’s stake