Twitter 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.
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