Hindenburg Research rejoices as Elon Musk suspends Twitter takeover

A Twitter short seller gloated on Friday after Elon Musk dampened his $44 billion bid to buy the social media site with a bizarre tweet that said negotiations were “on hold”.

Short seller Hindenburg Research had written on Monday that Musk “holds all the cards” in the deal and could threaten to walk away in order to get the company’s board to agree to a lower purchase price.

“Interesting,” one Musk replied at the time. “Remember to sometimes look on the bright side of life!”

Then on Friday morning, Musk revealed the deal was ‘temporarily on hold’ due to ‘spam/fake account’ issues – then insisted hours later that he was ‘still committed’ to the takeover.

Hindenburg Research founder Nate Anderson coyly claimed victory on Friday after Musk’s profanity sent Twitter’s stock price plummeting by as much as a quarter early on Friday before it partially recovered.

“Looking on the bright side of life this morning,” Anderson wrote.

Twitter shares were trading at $41.50 at midday on Friday, down 8% from the previous day and nearly 25% below Musk’s marijuana-themed buyout price of $54.20 per share – indicating that Wall Street is skeptical of completing the deal under its current terms, if any.

See also: Elon Musk likely trying to get Twitter lower price with ‘deal pending’ decision

Hindenburg has a habit of writing scathing denunciations of what he considers overvalued tech companies, including electric vehicle makers Nikola and Lordstown Motors, as well as controversial health insurer Clover Health.

When Hindenburg posted its initial report on Twitter on Monday, the investment group revealed that it had taken a short position in the company, meaning it likely profited from Friday’s fall.

“If Elon Musk’s Twitter bid disappeared tomorrow, Twitter’s equity would drop 50% from current levels,” Hindenburg wrote on Monday. “Therefore, we see a significant risk that the deal will be scaled back.”

Twitter TWTR,
-9.67%
shares were trading at $41.50 at midday on Friday, down 8% from the previous day and nearly 25% below Musk’s marijuana-themed buyout price of $54.20 per action – indicating that Wall Street is skeptical of completing the deal on its current terms, if at all.

Hindenburg has a habit of writing scathing denunciations of what he considers overvalued tech companies, including electric vehicle makers Nikola and Lordstown Motors, as well as controversial health insurer Clover Health.

When Hindenburg posted its initial report on Twitter on Monday, the investment group revealed that it had taken a short position in the company, meaning it likely profited from Friday’s fall.

“If Elon Musk’s Twitter bid disappeared tomorrow, Twitter’s equity would drop 50% from current levels,” Hindenburg wrote on Monday. “Therefore, we see a significant risk that the deal will be scaled back.”

Even former President Donald Trump seemed to echo Hindenburg’s position on Friday, writing, “There’s no way Elon Musk is buying Twitter at such a ridiculous price.”

“If it hadn’t been for the ridiculous billion dollar breakup fee, Elon would have been long gone by now,” Trump added in a post on his own alternative Twitter website, Truth Social.

This article first appeared on NYPost.com

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