Shares of Twitter Inc. bounced Tuesday, but stayed below where he purchased his 73.1 million share stake earlier this year.
climbed 5.2% in afternoon trading. On Monday, the stock had plunged 11.3% to a four-month closing low of $32.65, after Elon Musk, who is chief executive officer of electric vehicle maker Tesla Inc.
and space-transportation company SpaceX, said he was terminating the merger agreement with the social-media company.
In a 13D filing with the Securities and Exchange Commission on April 5, Musk disclosed the prices he paid from Jan. 31, 2022 to April 1 to accumulate his 9.6% stake.
Based on a MarketWatch calculation of the disclosed data, Musk bought his 73,115,038 Twitter shares at a weighted-average price of $36.157.
With the stock trading $1.817, or 5.0%, below that price, Musk would be losing about $132.85 million on his Twitter stake.
That’s a far cry from what he was making on this stake as of April 25, was the day Twitter agreed to be acquired by Musk for $54.20 a share. At the day’s closing price of $51.70, Musk’s Twitter stake was worth $1.14 billion more than what he paid for it.
But keep in mind the Twitter buyout deal comes with a $1 billion breakup fee, that could be paid by either Twitter to Musk, or by Musk to Twitter, if the deal actually falls through. And Twitter hasn’t show any sign that it will accept Musk’s termination of the deal.
Also read: Twitter: Elon Musk’s attempt to terminate the deal ‘is invalid and wrongful.’
Twitter’s stock has dropped 20.6% year to date, while Tesla shares have tumbled 34.0% and the S&P 500 index
has declined 19.5%.