Twitter shares gain amid massive stock market sell-off; Dow drops nearly 1,000 points – CBS San Francisco

SAN FRANCISCO (CBS SF/CNN) — As shares tumbled Friday in a massive sell-off on Wall Street, Twitter shares rose more than 3.23% in value as Tesla founder, Elon Musk continues his quest to buy the San Francisco-based company. social media giant.

But the news wasn’t all rosy for Musk. Tesla joined tech giants across Silicon Valley in being caught up in the selling frenzy, dropping $3.73 to $1,005 per share.

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FANG shares – Meta (Facebook), Amazon, Netflix and Alphabet (Google) – all fell at the closing bell. Meta fell $2.45 to $185.62 per share. Amazon fell from $65.45 to $2,900 per share. Netflix ended a miserable week, dropping $2.50 to $215.72 and Alphabet fell $97.84 to $2,398.

Overall, the Dow fell 981 points fueled by a wave of selling in the final 15 minutes before the closing bell. The Nasdaq Composite lost 335 points and the S&P fell 121.8 points.

On Thursday, Musk said he had lined up commitments worth $46.5 billion to fund a deal to buy Twitter, a week after making an initial takeover bid for the company.

He said he had commitment letters to fund the deal, including two debt commitment letters from Morgan Stanley and other unnamed financial institutions and a capital commitment letter from him, according to a filing with the Securities and Exchange Commission.

In the filing, Musk said he had yet to receive an official response from Twitter’s board of directors to his offer to acquire all of his shares he does not currently own for $54.20 apiece, a deal that would value the company at around $41 billion. .

He said he was “seeking to negotiate” a definitive acquisition agreement and “stands ready to enter into such negotiations immediately” – an apparent reversal of his statement in his acquisition offer letter that it would be his ” best and last” offer.

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Questions about whether Musk would actually be able to fund his acquisition of Twitter swirled in the days following his takeover bid, particularly after he said in an interview on the day of his bid that, “I don’t am not sure that I will actually be able to acquire [Twitter].”

Despite being the richest person in the world, much of Musk’s wealth is tied to Tesla stock, and some followers of the company have speculated that it might be difficult for Musk to s leverage against the historically volatile stock.

Although Twitter’s board hasn’t officially responded to Musk’s offer, it has implemented a so-called poison pill – a defensive move that could make it harder for him (or any other investor) buy or take a majority stake in the business without his approval.

Musk said in his Thursday filing that he was “exploring” whether to launch a takeover bid – a move to bulk buy Twitter stock directly from shareholders that could put additional pressure on the company’s board. administration – but “has not determined whether to do so at this time.”

Musk has already hinted at the possibility of a takeover bid in several recent tongue-in-cheek tweets, including one with a fill-in-the-blank word followed by “it’s the night.”

Morgan Stanley did not immediately respond to requests for comment. In a statement, Twitter spokesperson Brenden Lee said the company had received Musk’s “updated, non-binding proposal” and “new information on potential funding.”

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“As previously announced and communicated directly to Mr. Musk, the Board of Directors is committed to conducting a careful, complete and deliberate review to determine the course of action that it believes is in the best interests of the Company and all Twitter shareholders,” Lee said. .

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