The social network Twitter ended the trading session this Monday (25) with a rise of 7.40%, at R$ 126.20, after Elon Musk announced the purchase of the company for US$ 44 billion.
The billionaire will pay about $54.20 for paper and the social network will become a privately held company.
Shareholders will receive a 38% premium compared to the share price on April 1. Negotiations over the deal, which last week seemed uncertain, took shape after Tesla’s CEO presented shareholders with the financial details of his offer.
experts heard by CNN Brasil Business assess that investors should not buy the company’s shares to take advantage of the high and also the premium for the acquisition of Musk.
Cesar Crivelli, partner and analyst at Nord Research, pointed out that the acquisition of shares in the company is now not worth it, because it is already priced in shares. Crivelli points out that the shares have already risen as much as they should since the billionaire secured the financial resources to make the purchase until the confirmation of the acquisition this afternoon.
José Augusto Albino, partner at Catarina Capital, says that it is necessary to wait “for the next episodes, because it is not possible to know if the billionaire will seek profitability, change the management of the company or if he will just close the social network to transform it into a company”. of media that will act in the way that [o CEO da Tesla] he wants”.
Fred Nobre, leader of the analysis area at Warren, also stated that it makes no sense to buy the stock at this time because the “spread is too small”. He explains that the premium was already higher compared to the amount that Elon Musk will pay shareholders in relation to previous quotes.
“With each passing day, the value of the paper gets closer to the amount the billionaire will give shareholders to buy the shares.” If you consider Monday’s price, the stock needs to appreciate just 4.47% to reach Musk’s $54.20.
See the history of Twitter actions since April 1:
Musk on Monday told his more than 80 million followers that the company has tremendous potential and that he wants to improve it with new features, making the algorithms open source to increase trust and defeat spam bots.
“I think if the company had enough time to transform, it would have done a lot more than what Musk is offering now,” said Jonathan Boyar, managing director of the Boyar Value Group, which owns a stake in Twitter.
However, he added, “this transaction reinforces our belief that if markets do not adequately value a company, a third party eventually will.”
Musk’s move maintains a tradition of billionaires buying control of influential media platforms, which include Rupert Murdoch’s 1976 acquisition of the New York Post and the Wall Street Journal in 2007 and Jeff Bezos’ acquisition of the Washington Post in 2007. 2013.
The transaction has been approved by Twitter’s board of directors and is now subject to a shareholder vote. No regulatory obstacles are expected, analysts said.
The White House did not comment on the transaction, but said on Monday that President Joe Biden has long been concerned about the power of social media platforms.
*With information from Reuters
Source: CNN Brasil
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