Since Tesla CEO Elon Musk disclosed last month that he had bought a 9% stake in twitter, Twitter's share price has reversed all gains. Twitter shares fell more than 7% to $37.58 on Monday, falling below the closing price of $39.31 on April 1, the last trading day before musk revealed his minority stake in twitter. Investors have been selling off Musk's shares because of concerns that musk would abandon its agreement to buy twitter for $44 billion, or $54.20 per share, at the end of April.
Although Twitter's share price had fallen earlier last week, the sell-off accelerated after musk tweeted on Friday that the deal was shelved until he found more details about the false account and its prevalence on the platform. Musk later wrote that he was "still committed to acquisitions," and twitter chairman BRET Taylor responded, "so are we."
On Thursday, twitter announced a hiring freeze and cost cutting. Two executives also left the company, including kayvon beykpour, the head of consumer goods, who said Parag Agrawal, the company's CEO, asked him to leave.
Agrawal said on Friday that he still wanted to sell to musk, but was ready to continue "leading and running twitter" just in case.
With the continuous decline of share price, Twitter's current market value is slightly higher than $29 billion, about $15 billion lower than the acquisition price agreed by musk.