Musk’s Twitter offering isn’t enough to influence ETFs on social media

Elon Musk has offered to buy Twitter (NasdaqGS: TWTR) in an unsolicited deal worth more than $43 billion to take the company private, but exchange-traded funds tied to the media sector social swept away the hype.

Thursday, the Invesco Dynamic Media ETF (PBS) fell 0.5% and the Global X Social Media ETF (SOCL) fell 2.0%.

Meanwhile, Twitter shares were up 1.5%. TWTR represents 7.5% of PBS’s underlying portfolio and 5.8% of SOCL’s.

Billionaire entrepreneur and Tesla CEO Musk offered a $43 billion cash buyout offer to Twitter on Thursday, or $54.2 per share, arguing that the company should be private to grow and become a platform for freedom of expression, reports Reuters.

“Twitter has tremendous potential. I’m going to unleash it,” Musk, who is already the company’s second largest shareholder, said in a letter to the board.

The offer was officially made public on Thursday in a regulatory filing.

Musk, the world’s richest individual, previously rejected an invitation to join Twitter’s board after disclosing his 9% stake in the company, which many analysts saw as a sign that he would take control of the social media platform, as a seat on the board would have limited his total position to just under 15%.

Investors, however, largely rejected the offer, with Twitter shares even trading lower at midday, as well as the broader tech and growth segments.

Some observers have argued that Musk’s offer belittles the platform, which has become a major source of communication around the world. For example, Saudi Prince Alwaleed bin Talal tweeted about the deal, describing himself as one of Twitter’s “largest and longest-term shareholders” and rejected Musk’s offer which undervalued the deal. ‘business.

Musk said on Twitter that it was his “best and last offer”.

“Since I made my investment, I now realize that the business will not thrive and serve this societal imperative in its current form. Twitter needs to be turned into a private company,” Musk said in his letter to the president. from Twitter, Bret Taylor.

Musk has expressed his displeasure with the company’s ability to ban users from its platform at will, including former President Donald Trump.

“A lot of people are going to be very unhappy with West Coast high tech as the de facto arbiter of free speech,” Musk tweeted.

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