By Tomi Kilgore
Easy come, easy go, as shares of Twitter Inc. fell below where Elon Musk bought it, wiping out more than $1.1 billion in gains in four weeks.
The social-media company’s stock /zigman2/quotes/203180645/composite TWTR -0.44% sank 5.6% to $35.76 on Tuesday, the lowest close since March 16. It has tumbled 30.8% since it closed at a high of $51.70 on April 25, which was the day T witter agreed to be acquired by Musk for $54.20 a share.
A 13D filing with the Securities and Exchange Commission on April 5 showed that Musk, who is chief executive of Tesla Inc. /zigman2/quotes/203558040/composite TSLA -0.57% and founder of SpaceX, bought his 73.12 million shares of Twitter, or 9.1% stake, a t a weighted average price of $36.157 , according to a MarketWatch analysis of the data.
That means the stock closed Tuesday 1.1% below the purchase price, Musk would be losing $29.0 million on his investment. That compares with a $1.14 billion gain at the April 25 closing price of $51.70.
Keep in mind that the Twitter buyout deal comes with a $1 billion breakup fee , that could be paid by either Twitter or Musk, if the deal falls through.
On Wednesday, Twitter’s annual shareholder meeting is set to kick off at 1 p.m. Eastern. In the latest additional proxy statement filed on May 17 , Twitter included Musk’s tweet alleging 20% of Twitter accounts were fake/spam, and that Twitter refused to show proof that it was less than 5%. While the deal will likely be discussed, shareholders will not be voting on the deal at Wednesday’s gathering.
Twitter’s stock has dropped 17.3% year to date, while Tesla shares /zigman2/quotes/203558040/composite TSLA -0.57% have shed 40.6% and the S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.36% has declined 17.3%.