Twitter stock has fallen back to where it was before Elon Musk sparked takeover speculation by disclosing a 9% stake

·1 min read
Twitter headquarters in San Francisco off of 10th Street, with trees in the front of the photo
Twitter headquarters in San FranciscoEmily Quiles
  • Twitter stock is now back to its lowest position since Elon Musk announced a 9% stake in the company in early April.

  • Shares fell 6% to $38.31 Monday after tumbling 10% on Friday, when Musk said the deal is on hold.

  • That's below the $39.31 closing price on April 1, the last trading day before he disclosed a 9% stake.

Twitter stock fell back to levels not seen since Elon Musk first sparked takeover speculation last month by disclosed a stake in the social media company.

Shares were changing hands at $38.31 on Monday, down 6%. That's below the $39.31 closing price on April 1, the last trading day before he disclosed a 9% stake.

Twitter's latest decline comes as Wall Street is growing increasingly skeptical that a deal with Musk will go through.

On Friday, he said the deal to takeover Twitter was "on hold" over reservations concerning fake accounts, or bots, on the platform. Musk has since reiterated his commitment to securing a deal, although some analysts say Musk could be using the bot issue as a scapegoat to abandon the deal for a breakup fee.

He raised new doubts about the deal after he tweeted on Saturday that Twitter's lawyers claimed he violated a nondisclosure agreement by revealing the sample size for the platform's checks on bots was 100.

Meanwhile, the spread between Musk's offer price of $54.20 and where the stock currently sits, has only gotten wider since Musk began pursuing Twitter with real effort.

Read the original article on Business Insider