The impact of Snap’s SNAP ad-spend warning reverberated throughout social media stocks on Thursday, which led to a decline in the price of Twitter stock. Additionally, Bloomberg reported that Elon Musk’s planned takeover of the group could be subject to a review for its potential impact on national security.
Musk, who agreed to pay $44 billion, or $54.20 per share, for the microblogging platform last spring, has made several statements recently that appear to suggest a pro-Russia stance in the midst of Russia’s invasion of Ukraine. These statements come after Musk made an offer to purchase Twitter (NYSE:TWTR) for $44 billion, or $54.20 per share.
Bloomberg also reported that government officials have grown concerned with Musk’s actions in the region following his threat to cut off access to the Starlink satellite service in Ukraine. Musk justified his threat by citing funding costs that would be borne by SpaceX, which is the company that operates the Starlink satellite service.
The notion of strong relations with China, the location of Tesla largest’s and most important gigafactory, as well as the world’s largest auto market, has further contributed to worries with respect to the billionaire’s political connections. China is also the site of the world’s largest car market.
Given that the group participating in the buyout includes investors from China and Saudi Arabia, the Bloomberg article claimed that the United States government may utilize the Committee on Foreign Investment in the United States, more commonly known as CIFUS, to assess the transaction.
In trading that took place early on Friday, Twitter stock were marked 4.15% down, resulting in a price of $50.28 per share
A warning from messaging app maker Snap, which posted the slowest rate of revenue growth since the company went public in 2017 over its third quarter, added additional pressure on Twitter shares (NYSE:TWTR). Snap stated that it would see little to no revenue growth amid a pullback in global add spending through the year’s final three months. This came after Snap posted the slowest revenue growth rate since the company went public in 2017.
The Bloomberg report could also be interpreted as a last-minute challenge to the Twitter (NYSE:TWTR) deal, which Elon Musk finally agreed to follow through on last month after failing in a series of legal challenges to back out of the merger agreement while attacking the company’s transparency on fake accounts and privacy.
During the results call for Tesla’s third quarter, Musk shared with investors that he was “excited about the situation on Twitter” and that the platform has “great potential.”
Musk stated that “myself and the other investors are plainly overpaying for Twitter right now.” In his opinion, the long-term potential for Twitter (NYSE:TWTR) is an order of magnitude more than its present valuation.
A different story published by the Washington Post stated, on the other hand, that Musk was planning massive employment layoffs at the company headquartered in San Francisco, and that he may slash personnel by as much as 75% over the course of the upcoming months.
Featured Image- Megapixl @ Dolphfyn
Author Faith Yakubu 
