Why Wall Street Thinks Elon Musk Is Getting Out of the Twitter Deal

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Why Wall Street Thinks Elon Musk Is Getting Out of the Twitter Deal
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He said he would pay $54.20 a share. There’s a piece of paper saying he’ll pay $54.20 a share. Investors do not think he will pay $54.20 a share.

changed is that Musk has an agreement, in writing, to buy Twitter for $54.20 per share. But the market is clearly not convinced that Musk will actually take over the company at a price anywhere close to $54.20, because the stock trades today for less than three-quarters of that amount.

Daniel Ives is a managing director and senior equity research analyst at Wedbush Securities, an investment firm where he covers the technology sector. I talked with Ives on Wednesday about why Twitter’s trading price is so far from Musk’s agreed-upon deal price, how this acquisition differs from others in its weight class, and why investors aren’t confident that Musk will buy Twitter after all. Our interview has been edited for clarity.Alex Kirshner: Musk agreed to buy the company for $54.

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