TWTR stock is trading at $51.08 as of 10:58 AM EDT on Thursday.
The protracted dispute between Twitter (NYSE:TWTR) and Elon Musk regarding Musk’s acquisition of the social network appears to be coming to a close, but some experts think the board of directors of the firm is now engaging in a game of “high stakes poker” as the deal is nearing completion.
Investors are waiting for Twitter (NYSE:TWTR) to formally settle its legal disputes, which analyst Dan Ives of Wedbush Securities believes may happen at “any time” and open the door for the purchase to be completed. Given the ongoing issue since Musk threatened to walk away from the contract earlier this year, there is yet still “huge distrust” on both sides.
The court case is still scheduled to begin on October 17, according to the Delaware judge assigned to rule over the matter, and neither party has filed a stipulation to stay.
With the Delaware Court lawsuit beginning on October 17 and ongoing depositions, Ives stated in a letter to clients, “We continue to expect the deal gets done cleanly despite some late-night poker plays from the Twitter camp.”
Despite the fact that the debt markets have become unstable since the deal was announced, Ives said that some questions have arisen regarding Musk’s $12.5 billion debt financing. Nevertheless, the analyst added that the banks that backed Musk are “essentially cemented to this Twitter debt deal” and are, therefore, likely to have no other choice.
TWTR stock exposed to developments
According to Wells Fargo analyst Brian Fitzgerald, the deal should be considered as little more than a “one-off” and is unlikely to be a part of a “broader consolidation wave” because it may be coming to an end.
Although we believe that, for its core use cases (one-to-many communication, cultural/political interest graph, etc.), [Twitter] faces only imperfect substitutes in the market and could reaccelerate growth with improved execution, we believe that staff departures and distractions have slowed [Twitter’s] pace of consumer and monetization product innovation in recent months and that user growth has decelerated.
The analyst said that if Musk were to make “major modifications” to the platform’s support for free expression, it would probably damage ad revenue, which could run to other platforms like Meta Platforms (NASDAQ:META) Reels, TikTok, YouTube Shorts, Pinterest’s (NYSE:PINS) Idea Pins, Snap’s (NYSE:SNAP) Spotlight, and other newly developing advertising inventory. Apollo Global Management (NYSE:APO), according to a report on Wednesday, was no longer interested in heading up the preferred financing element of Musk’s leveraged acquisition of Twitter.
Analyst Upgrades Twitter Stock Price Target
Featured Image – Megapixl © Ekinyalgin
Author Jowi Kwasu 
