NewsletterTwitter Stock Plummets, US Gov To Intervene In Elon Musk Deal
Twitter shares plummeted in the pre-market as the company continues to face multiple difficulties. Elon Musk informed Twitter that he is willing to purchase Twitter at the original price. However, reports surfaced that Musk is looking to fire 75% of Twitter’s workforce. Twitter stock stumbles as Elon Musk deal is in further jeopardy.
Now, Bloomberg reports that the US government is looking to put some of Musk’s ventures through security reviews. The report highlights Musk’s deal to purchase Twitter will be subject to security review. The Starlink security network may also be subjected to review.
In the pre-market, Twitter shares are down 7%. They were down as much as 16% in the pre-market.
Why Twitter Stock Is Falling After Elon Musk Deal
In the start, Elon Musk joined Twitter as a board member. However, he soon extended his offer to buy Twitter at the cost of $44 billion. However, Elon Musk soon pulled his offer from Twitter on the accusation that Twitter under-reported its bot’s activity. Twitter’s shares plummeted as a result of Musk pulling the offer.
Twitter sued Musk in court, after which Musk informed Twitter that he will buy the company at the original offer. However, Musk plans to buy Twitter with the help of certain foreign investors. The Biden administration is uncomfortable with what they believe is Musk’s growing pro-Russia stance.
Recently, Musk offered a peace-deal solution for Russia-Ukraine. The peace deal includes the provision to redo the referendum under the United Nations. It also asks Ukraine to remain neutral. The provision also makes Crimea formally a part of Russia. Reports further revealed that Musk may have offered this peace deal after talking with Russian president Vladimir Putin.
Musk also suggested that he is thinking of shutting down Starlink services in Ukraine due to cost reasons. The Biden administration is uncomfortable with Musk’s pre-Russia stance. Hence, Twitter may soon be under a security review.
How Will Twitter Deal Affect The Crypto Market
Elon Musk has publicly supported Doge Coin. DOGE fell when Musk pulled away from the Twitter deal and skyrocketed when he announced that he is buying Twitter.
Moreover, the crypto market shows a strong correlation with technology stocks. If Twitter dumps, the crypto market can struggle as well.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Crypto Market Crash Deepens as $1 Billion in Bitcoin, ETH, XRP, Altcoins Liquidated
- Bitcoin Price Crash to $89K, Last Chance to Buy Under $90K, Says Gemini Co-Founder
- XRP Gets Major Boost as Four Spot ETFs Prepare for Launch This Week
- Breaking: Solana ETFs by Fidelity and Canary Marinade to Launch on Tuesday
- Just-in: White House Reviews IRS Proposal To Tax US Citizen’s Outbound Crypto Holdings
- Will MOODENG Reach $0.1 and MEW Hit $0.002 After Robinhood Listing?
- What’s Next for Cardano Price After Breaking Below Key Support Level?
- Pi Coin Price Could Jump 30%, But There’s a Catch
- Expert Sees XRP Price Rally if it Holds Key Support Ahead of Ripple ETF Launch
- Chainlink Price Eyes Breakout as Whales Scoop 150K $LINK
- Top Analysts Predict How Low Bitcoin Price Might Fall?
