Elon Musk Eyes Twitter for Lower Sale Price Amid the Deal on Hold

Elon Musk has sparked speculations that he would negotiate his acquisition of Twitter, stating that the possibility of the current deal going at a lower price is "not out of the question", reported first by Bloomberg during the Miami conference.

Is Twitter Falling?

According to Bloomberg, Twitter shares fell by 8.2% on Monday to close at $37.39. This is below the $54.20 a share that Musk agreed to pay last month. They also noted that stocks have been falling as well since news came around that Musk will be taking over Twitter with a $44 billion deal.

The past week has sparked even more concerns since Musk questioned Twitter's public data on the percentage of spam and fake accounts on the social platform, which he later revealed that he violated his non-disclosure agreement with Twitter, according to the company's legal team.

But on Monday at a Miami tech conference, he noted that there is a great possibility that he will bid for a lower price for the acquisition, which is a surprise since the Tesla exec agreed to pay 38 percent premium on Twitter after his deal with the platform's board last April.

The billionaire also announced on Friday that the buyout is "temporarily on hold" citing concerns that the number of bots on the platform is higher than the company's estimate. He added that his team will have an independent analysis on bot counts for further verifications.

Is it Possible to Renegotiate?

According to The New York Times, analysts have already been speculating that Musk would renegotiate the acquisition at a lower price or that he could back out of the deal completely. Analysts cite that tech company's stocks falling down since Musk announced his takeover, even the billionaire's shares of Tesla have fallen almost 30 percent.

The New York Times added that renegotiating the deal would not be that easy since it includes a $1 billion breakup fee and Musk's deal with Twitter entails a "specific performance clause," which enables the company the right to sue or force him to complete the deal as long his debt financing is intact.

Musk's violation of a non-disclosure agreement over the weekend could be a proof to make the deal even more challenging since a part of their deal includes a "nondisparagement clause" which prohibits him from tweeting negatively about the transaction.

But so far, they have been continuing their deal. They both held a previously scheduled meeting on Friday as a "part of the transaction planning process."

This article is owned by Tech Times

Written by Joaquin Victor Tacla