Twitter declined to comment. Tesla Inc was not immediately available for a comment from its Chief Executive Musk.
“We are supportive of Musk’s efforts to take Twitter private and see a significant chance the deal will close at a lower price,” Hindenburg said.
The short-seller said the deal has seen a number of developments, from financing to board approval, which could have weakened the company’s position.
Hindenburg said Musk could walk away paying the $1 billion breakup fee and has leverage to renegotiate if he chooses to.
Last month, Twitter secured a $44-billion cash deal to sell itself to Musk and received over $7 billion in funding from high-profile investors, including Oracle’s co-founder Larry Ellison and Sequoia Capital.