Elon Musk’s Twitter bid is now a ’13th Friday horror show’ and these three outcomes are likely, Wedbush says.

  • Wedbush’s Dan Ives wrote in a memo that Elon Musk’s Twitter bid is now “Friday 13th Horr show.”
  • Musk tweeted Friday that his bid for his social media company had been put on hold.
  • Musk later said he was interested in and “still committed to the acquisition.”

Wedbush’s Dan Ives wrote in a Friday morning memo that Elon Musk’s deal to take Twitter private became a “circus show” and analysts are keeping an eye on some potential consequences for the saga.

Ives’ comments lead to Musk’s aftermath. early morning tweets It’s that the deal has been suspended due to concerns about the number of fake accounts on Twitter. Shares of the social media company fell up to 25% in premarket trading since the tweet, reducing losses to around 9% and trading at $40.91 as of 10:08 AM EST.

In a follow-up tweet hours later, Musk said he was “still committed to the acquisition.”

Given the latest developments, Ives has mentioned three possible paths here. The first would be seeing Musk’s tweets on Wall Street as a sign that the deal is almost done.

“Musk’s nature of creating so much uncertainty in tweets (not reporting) is very annoying on the streets with us and we are now sending this entire deal to a circus show with a lot of questions that don’t have specific answers on the path of this deal. . Forward,” Ives wrote.

Another possibility, according to Ives, is that the new development will allow Musk to renegotiate bid terms and prices. Twitter’s share price is well below the $54.20 per share suggested by Musk, and last week a prominent short seller said the Tesla CEO is in full control and may adjust the transaction price to better reflect market and company-level conditions.

Musk could also get out of the deal entirely for a $1 billion dismantling cost, Ives said. Musk has already “changed the market significantly” and his comments on Friday question the pillars of the deal so far, such as his external financing and investor stance.

Ives said the turbulence could be a positive sentiment for Tesla stock as “Street will now see a tradable under 50%”. Tesla stock has fallen more than 20% since Musk first disclosed a 9.2% stake in Twitter and began private negotiations in early April.

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