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Tuesday, November 29, 2022
HomeTechnologyTwitter stock tumbles on Wall Street after new uncertainty over Elon Musk...

Twitter stock tumbles on Wall Street after new uncertainty over Elon Musk buyout

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Twitter shares fell about 5% on Wall Street this Friday (21), after information that could complicate the purchase of the social network by Elon Musk.

According to a Bloomberg article released Thursday night, the Joe Biden administration plans to submit the Tesla founder’s $44 billion takeover bid for a national security review.

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The US government is concerned about the presence of foreign investors, including Saudi Prince Al-Walid bin Talal and the Qatari sovereign wealth fund, in the consortium with which Musk raised more than $7 billion in May to finance his operation.

Bloomberg indicates that this national security review could be directed by the Committee on Foreign Investment in the United States (CFIUS), chaired by the Treasury Department.

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“In accordance with the law and its practices, CFIUS does not publicly comment on transactions it may or may not review,” a Treasury spokesperson told AFP.

On Thursday, The Washington Post revealed that Musk plans to lay off nearly 75% of Twitter’s 7,500 employees if he succeeds in buying the platform.

“Twitter has long had to face cost cuts due to lack of growth,” said Dan Ives of Wedbush.

But, for the analyst, firing three-quarters of the workforce would be “too aggressive” and would harm the company.

Twitter was also hit by the results of the social network Snapchat published on Thursday for its third quarter. The platform had the lowest revenue per user since early 2021, a sign of the tech companies’ struggles to generate ad revenue.

Snap, Snapchat’s parent company, was down nearly 30% at 12:25 pm ET on Wall Street.

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Frederick
Frederick
I am Frederick Tuttle, who works in 247 News Agency as an author and mostly cover entertainment news. I have worked in this industry for 10 years and have gained a lot of experience. I am a very hard worker and always strive to get the best out of my work. I am also very passionate about my work and always try to keep up with the latest news and trends.

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