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Twitter acquisition by Elon musk
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- 2. Overview Twitter, online socialmedia platform and microblogging service that distributes short messages of no more than 280 characters—called tweets Twitter’s stock had explosive growth from 2020, going from $19 bn to $62 bn.. The downtrend continued after disappointing after Q3 in Oct 2021. affected overall market and mcap fell to $34bn by jan 2022 From January 2022, Musk silently began purchasing Twitter shares,acquired over 5% stake . From march 2022 , musk started tweeting about himself due to which share prices started mildly increasing.
- 3. 1.4 April,2022- Elonmusk bought 9.2% stake. Become largest shareholder and invited to the board by CEO 2. April 14,2022- Elon made an unsolicited offer to buy the company. Board responded with poision pill strategy 3. April 25,2022- Board accpted the buyout offer at$44 bn. 4. July 2022- Musk announced his intention to terminate agreement 5. Oct 27,2022- Deal closed and musk become new owner and CEO
- 4. Twitter 2.0 $46.5bn in equity and debt financing cover $44bn price tag and closing costs loan from bank $13bn of the debt financing. Financing plan - In his pitch deck, Mr. Musk claimed he would increase Twitter’s annual revenue to $26.4 billion by 2028, up from $5 billion last year. Musk's decision to offer blue ticks for just $8 and $11 completely ended the celebrity culture on Twitter. In April 2023, the blue bird logo that was the key symbol of Twitter was replaced overnight with a Shiba Inu, the dog logo. The bird, however, was reinstated a couple of days later.