Twitter shares fall amid concerns over Musk deal

Shares of Twitter fell Friday amid concerns driven by Elon Musk’s potential acquisition of the company and a federal investigation.

Twitter shares closed 4.9 percent lower Friday even as the stock market on the whole rallied into the weekend, slipping to $49.88 per share. The Dow Jones Industrial Average, S&P 500 index and Nasdaq composite all rose more than 2 percent on the day.

Musk is seeking to close a deal to purchase the company for $54.20 per share with the backing of several major financial institutions and foreign investment funds, a potential source of national security concerns. 

Twitter shares fell Friday in part due to reports that Biden administration may investigate the national security implications of Musk acquiring Twitter, which could lead to action to block the transaction.

Musk is also considering cutting up to 75 percent of Twitter staff after acquiring the company, according to reports this week, which also boosted pressure on Twitter shares.