Twitter-Musk takeover deal sparks $138 million for short sellers

Twitter-Musk takeover deal sparks $138 million for short sellers

The confusion surrounding Elon Musk's takeover bid for Twitter Inc. has resulted in millions in paper profits to short sellers who believe that the world's richest person won't follow through on his purchase of the social media platform.

According to S 3 Partners data, potential returns for the month could be $264.4 million after Twitter's 9.7% drop in Friday s trading delivered a $138.8 million boost in mark-to-market profits for short sellers.

Musk said on Friday that he is still committed to the deal, even though his $44 billion was temporarily on hold. The pair of messages sent Twitter shares into a tailspin with the gap between his $54.20 offer price and the stock's trading widening to the largest since it was struck.

According to Ihor Dusaniwsky, S 3 Partners' managing director of predictive analytics, Ihor Dusaniwsky, said that Twitter-Musk Deal Spread Blows Out after Purchase Put On Hold Roughly 1.32 million shares, worth $60 million, were shorted over the last week as the spread started to widen. He said that Twitter shorts are still down for the year, losing roughly $69 million, and that's because of the fact that they're down for the year.

Nearly 5% of the Twitter shares available for trading are sold short, worth about $1.43 billion, the firm s data shows.

The long and short side of the trade has been extremely volatile with profits and losses swinging wildly from day to day, according to Dusaniwsky, due to Elon Musk's offer and tweets.

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