If Elon Musk scraps Twitter deal, here’s what may happen to the stock

Elon Musk’s current bid for Twitter runs for $54.20 a share but what happens to the stock if Elon Musk scraps the Twitter deal? Brent Thill, Jefferies Equity Research Analyst explains further.

Video transcript

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BRENT THILL: I mean, many have said the downside for Twitter effectively could be the low 30s if this fell through. And clearly, we believe he's just trying to negotiate a lower price. There's been all kinds of public filings that have said that the bots are less than 5% of users. So I don't know what the controversy is there. The only way you could spin this is that he's trying to renegotiate a lower price based on what happened to the overall tech market.

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$54.20 is probably, again, the higher end. I think everyone's kind of bracketed the transaction somewhere between the high 50s to low 30s. And again, it really depends on the shape of the curve of their overall business, the overall market, and the tape. And the tape has gotten violently negative since this happened.