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Twitter shares tumble 2% as investors worry Musk abandons Twitter acquisition


Twitter shares fell 2% on April 27, mainly because investors worried that Tesla CEO Elon Musk might pay a astronomical $1 billion "termination fee" and abandon the $44 billion acquisition of Twitter . The system quotation shows that Twitter (TWTR.US) shares fell 2.09% on the 27th to close at $48.64, which was 11% lower than Musk’s purchase price of $54.20. The transaction is pending shareholder approval and U.S. regulatory approval. "Barron's" reported that some Tesla investors are not optimistic about Musk's acquisition of Twitter, citing that it will distract Musk from multiple tasks and distractions. Musk paid $54.20 per share in cash for a total of $44 billion to buy Twitter and was approved by Twitter's board, but investors worried that he might be forced to sell shares to raise capital. Musk has pledged $60 billion worth of Tesla stock as collateral for bank financing, about a third of his holdings. According to the acquisition conditions announced on the 26th, if Musk fails to complete the merger and acquisition transaction, he must pay a breakup fee of $1 billion to Twitter to make up for the loss caused by the buyer's default to the seller. Markets have begun to speculate that Musk may decide to pull out of the deal if Tesla's share price falls, preventing Musk from getting enough capital.
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