Loup Ventures' Gene Munster said on Monday he believes investor confidence in Tesla Inc (NASDAQ: TSLA) CEO Elon Musk’s bid to take-private Twitter Inc (NYSE: TWTR) is diminishing.
What Happened: The Tesla-bull and tech analyst lowered his expectation for the $44 billion deal to go through to 50% from a prior 70%.
“The odds are going down,” Munster said on CNBC’s Fast Money.
“What’s at stake here is some principles around frustration Elon has about the type of information they have shared with him… investor's vote of confidence is going to be diminishing as well, not because of the number of bots but because it has been politicized between the right and the left.”
See Also: Elon Musk Sends Letter To Twitter: Here's Why The Social Media Stock Is Sliding
Why It Matters: The development follows Musk’s threat to walk from the mega-deal as he accused the microblogging company of not revealing the right breakup of its user base, especially the spam accounts.
The billionaire entrepreneur has accused Twitter of "actively resisting and thwarting his information rights" under the terms of the agreement, according to a letter the Tesla CEO sent to Twitter on Monday.
Musk has estimated fake users make up at least 20% of all Twitter accounts, prompting some analysts to say he is likely using the bots issue as a scapegoat to walk away from the deal that is currently on hold.
Price Action: Twitter closed 1.5% lower at $39.6 on Monday, according to data from Benzinga Pro.
