Elon Musk’s Twitter Acquisition In Jeopardy As Stock Plummets

Elon Musk’s Twitter Acquisition In Jeopardy As Stock Plummets

Elon Musk’s Twitter ($TWTR, NYSE) acquisition is in jeopardy of falling through due to his non-disclosure agreement (NDA) violation. Musk has been concerned in recent weeks regarding the number of bots/fake accounts on the social media giants platform, claiming that these accounts make up less than 5% of users.

Current Twitter CEO Parag Agrawal says that an external estimate of spam accounts is not possible, yet Musk still conducted one, breaking his NDA in the process.

The bad news does not end for Musk as he is also being investigated by the SEC for his delayed notification after buying more than 5% of Twitter’s stock. Any individual that purchases more than 5% of a company’s shares is forced to notify the SEC, however, Musk did not file until April 4, 2022, despite starting to buy shares in January.

Musk is still committed to buying the company as he acknowledges a deal at a lower price can occur.

Musk is currently the CEO of the electric vehicle manufacturer, Tesla ($TSLA, NASDAQ), and space technology company SpaceX (privately owned).

Unusual Options Activity: Unusual options activity occurring on Friday predicted Twitter’s fall today as there was a put/call ratio of 1.361.

Price Action: At the time of publication, Twitter shares were trading at $37.94, down 6.75% on the day and giving up all gains since Musk first announced interest in the company.