Live on Bloomberg TV

00:00The company is my Bloomberg terminal. The upshot of all of this is that the market increasingly doubts whether this deal will happen right. That's the spread between the fifty dollar 20 cents offer price. And where we're currently trading we're down for an eighth straight day John. As you know where do we go from here. We'll ask someone else. I'd love to. Thank you. I'm going to ask Dan ISE of Went First. Who says this. This circus now takes another turn. As Musk appears to be walking from his tail or driving a much lower price on the spam fiasco for Twitter the street will now assign a high probability a deal does not happen. Dan Ives joins us right now. Dan you and the team over a wet versus say 60 percent chance the mass walks away from Switzer. Why isn't it higher than that. I mean it could be higher. Mean it could be as high as 70 75 percent. I think what Ed's talking about if a deal does get done it's significantly lower than the 54 a 20 minute 54 to 20 at this point. It's out the window. There's better chance replan for the South DAX in the playoffs and that deal happened at that price. Now it just comes down to can they renegotiate on the BART issue or does he walk. And of course if he walks. It's not as simple as the billion dollar breakup. I think there's also a lot of issues that could play out in court that the Twitter board would contend as well. So Dan talk to me about that what you think those issues would be and you'll get the actual specifics of the deal. Some of the actual due diligence. I think there's questions about if he could actually walk on this specific issue. And that's why right now I mean Twitter board they're between a rock and a hard place because there is a deal that's agreed upon and observe the markets dramatically changed. We continue to believe most got cold feet. It is more of a ski good issue. No doubt the BART issue is is clear and present. That's a new one issue. But the fact that he's trying to contend it. I mean the New York City cab job knew that Twitter and abolish that. I think that was a sign of how we understand this a little bit more. Why can't he just walk away pay the billion and that's it. I mean I think there's some specific due diligence that he ultimately would need to prove. Right. That about the 5 percent being inaccurate versus what he's talking about in that specific issue needs to play out right now behind closed doors in terms of them either renegotiating common to and no common to it ultimately would be a lower deal price. That's right. The street right now is assigning much. He's getting cold feet. Welcome. This is Steve. Good to try to get out of the deal if he does do a deal. It's obviously at a much lower price. And that's why right now the street is basically waiting to see how the negotiations go behind the scenes. Well no one is saying this cloud behind closed doors. We're seeing a plan in public one. And so ever higher prices on the table as it played down for more than just Elon Musk. Who else is light enough circling around this name. I think that's the fundamental problem because they'll be at the altar with no one there because at these prices I don't think there's a strategic or financial interest there. I think you start to get to wheeler prices. Then you could start to automation to some bidders come up. That's why right now you know I must say I still believe there is some change. Who wants to get the deal done at a lower price. But the problem is that I just don't see any of the strategic or financial bidders out there which is why Twitter's backs against the wall in terms of how they handle this what I'll call Alfred Hitchcock Way episode. Thank goodness for Tesla. Yeah I mean this has been over 100 hours per share overhang on Tesla's stock. Big part of it is that leverage the Shery Ahn billion come off of cash in terms of musk golden child. And I think ultimately that was really where the rubber meets the road. I think that's what really changed the mind. Under estimated I think the impact on Tesla stock this would be a bit of a relief. Let's just be clear. The way Musk has handled this is a disaster. It's a black eye for Musk. And I think in the eyes of the street I think there's actually a net negative impact even in terms of for Tesla stock just the way Musk has handled this.

No schedule data available.

Musk Got Cold Feet in Twitter Deal, Ives Says

Dan Ives of Wedbush Securities says it may not be easy for Elon Musk to walk away from buying Twitter. He's on "Bloomberg The Open." (Source: Bloomberg)

More From Bloomberg The Open
All episodes and clips

Bloomberg Technology
The only daily news program focused exclusively on technology, innovation and the future of business from San Francisco. Hosted by Emily Chang.
More episodes and clips