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Elon Musk admits he is paying too much for Twitter

Elon Musk admits he is paying too much for Twitter

Elon Musk admits he’s paying too much for Twitter: Tycoon buys social media platform for £38bn

“Disaster deal”: Elon Musk is the richest man in the world

Elon Musk has admitted he pays too much for Twitter.

The 51-year-old tycoon, the world’s richest man with a fortune of £185billion, is buying the social media platform for £38billion.

But when asked about the price, the boss of electric car maker Tesla said: “I and other investors are obviously paying too much for Twitter right now.”

The comments confirmed what many had been saying for months.

Musk’s $54.20 per share bid was about a third higher than Twitter’s price at the time, and social media companies including Facebook-owner Meta have since been hit by a devastating selloff. .

Wedbush wealth manager analyst Dan Ives said: “Musk buying Twitter is a train wreck, and he’s probably overpaying by £18billion.

“Elon has embarked on a disaster deal and he finally realizes the £38billion price tag is sheer madness.

“The problem for Tesla investors is that Musk would likely have to sell more stock to fund this deal, which we believe will be one of the worst, most overpaid M&A deals in market history.

“Selling Tesla stock to fund Twitter is like trading caviar for a $2 slice of New York pizza. The easiest part for Elon is buying Twitter, the hardest part will be fixing it. .

But Musk struck an optimistic tone about Twitter’s future, saying the microblogging site would have much higher long-term value.

The South African has revealed he took a 9.2% stake in Twitter in April before launching his audacious £38billion takeover.

Twitter backed his offer, but chaos ensued when Musk tried to back down from allegations about the number of fake accounts on the platform.

After months of legal wrangling, with Twitter suing Musk to force the deal, he agreed to “close the deal” at the original price. A showdown between the two sides in a Delaware court was averted when a judge stayed the case and gave Musk until October 28 to close the deal.

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