Distraction or hostile takeover? Here’s what analysts say about Elon Musk’s offer to buy Twitter by skleb1234
“Twitter has extraordinary potential… I will unlock it,” Musk wrote in aattached to the SEC filing that outlines his plans to make it “the platform for free speech,” adding that if the offer is not accepted, he would need to “reconsider my position as a shareholder.”
Despite the Tesla billionaire’s grand takeover bid, which he claims is his “best and final offer,” the initial reaction from Wall Street analysts was mixed, with some remaining skeptical about whether Twitter would actually accept an offer, while others say that Musk won’t stop until he owns 100% of the company.
Investment firm CFRA downgraded Twitter to a “hold” from a “buy” rating on Thursday, saying the offer price should be “enticing to shareholders” and will be “difficult to reject,” given that Musk is not likely to make a better offer. Wedbush analyst Dan Ives, meanwhile, believes that the “soap opera” will end with Musk owning the company after an “aggressive hostile takeover,” adding that it would be highly unlikely that any other bidders can make an offer “at this price level.”The Financial Times
, pointing out that Musk could be distracting attention from other issues such as Tesla’s closed factory in China.“The Musk bump in Twitter shares is likely to fade as investors realize that Musk is not the answer to Twitter's monetization and user experience challenges,” says David Trainer, CEO of Nashville-based investment firm New Constructs.
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