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Elon Musk Agrees to $44b Deal for Twitter

drstrangelov said:
Does this mean Tesla stock is going to plummet soon? Basically this is Elon saying Twitter is a better place to park is money than Tesla in practice, isn’t it?
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I think that the short term downside pressure will be Musk selling Tesla shares to raise the money to complete the deal.

I don't think many people will read much into his capital allocation.

Just IMO
 
Adamant said:
*$280 Billion
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Yea that's absurd, I mean, damn man....$280,000,000,000. It would honestly be bad if he went down the tubes. Tesla, SpaceX, Starlink, and now Twitter. Just SpaceX alone he has accomplished more than NASA ever has in terms of rocket science.
 
If Elon wants to do something good with Twitter he will make all users have to use their real name and prove they are who they say they are to have an account.
 
I guarantee you he agreed to it since he wants to have a degree of influence over the elections this November (more so since Twitter has largely benefited one party).
 
Elon is a fucking helmet
 
I was reading about how the $13b debt is being priced and it is a disaster. The $13b is senior debt. Increase in interest rates since the deal was first announced plus the insane leverage ($13b senior on $1b EBITDA) is insane. I am not a LOB expert but even in a "leveraged" buy out, 5x EBITDA senior debt is high. I thought that the banks would be selling the debt at 90-95 cents. Painful but whatever. Instead I have been reading that it may be as low as 50 cents. Even at 70 cents, that is basically capping Day 1 enterprise value at $9b. equity is essentially zeroed on Day 1.
 
MusterX said:
The articles so far just say musk wants to avoid the trial so he's agreed to buy Twitter but it just seems like a bizarre move by Twitter that when they succeeded at getting rid of Musk, which is what they wanted, then draw him back in and end up selling to him.
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Twitter BOD (not exactly known for competence) played this really well. Musk's behaviour has been bizarre but Twitter has acted perfectly rationally.

Twitter solicited the highest possible offer for the business and then forced the execution of the purchase/sale agreement.

The deal is not closed yet but Twitter have done well for their shareholders. Depending on how the senior debt is priced, I could argue that the market enterprise value for Twitter could be as low as $7b on Day 1 of Musk owning it. Leaving aside the debt structure, Twitter could be trading at $10b or $15b right now if not for Musk?
 
eddymotto said:
Twitter BOD (not exactly known for competence) played this really well. Musk's behaviour has been bizarre but Twitter has acted perfectly rationally.

Twitter solicited the highest possible offer for the business and then forced the execution of the purchase/sale agreement.

The deal is not closed yet but Twitter have done well for their shareholders. Depending on how the senior debt is priced, I could argue that the market enterprise value for Twitter could be as low as $7b on Day 1 of Musk owning it. Leaving aside the debt structure, Twitter could be trading at $10b or $15b right now if not for Musk?
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Didn't Twitter say they didn't accept his offer to buy? I'm not sure what the current story is, it changes a lot.
 
MusterX said:
Didn't Twitter say they didn't accept his offer to buy? I'm not sure what the current story is, it changes a lot.
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Initially, yes, but that is pretty standard negotiations.

It is like you are chilling in your house one day and a rich South African dude shows up and offers you $1m to buy it.

You say "no" because you are not really looking to sell your house and you think you can get more for it anyway.

You talk to your wife and she tells you that you are crazy, you will never get a better offer, and you had better accept.

You go back to the rich South African and he confirms that his offer for $1m still stands.

You both hire lawyers and the rich South African signs an agreement to buy your house for $1m.

You are thrilled. Pop some champaign.

A few weeks later, housing prices are plummeting and the rich South African guy comes back and says "I have changed my mind. I don't want to buy it anymore".

Given how housing prices are falling, you are even more keen to sell for $1m. You tell the rich South African dude that a deal is a deal and he has to close.

The rich South African says the deal is off because you have termites in your basement and you never told him.

You tell the rich South African that you mentioned there may be some termites but, more importantly, he could have hired his own inspector before he signed the deal. He choose not and so it is his problem anyway.

The rich South African says "I'm not doing it. Sue me"

You sue him.

The rich South African starts making more and more bizarre claims about information you hid from him concerning your house. Did you know that aliens visit there all the time? There are ghosts? It was built on an ancient First Nations cemetery?

A couple of weeks before the trial is about to start, the rich South African realizes he is going to lose and look like a moron while doing so and so he comes back and says "Look, I will pay you the $1m for your house. Drop your lawsuit"

You say "get bent. When the $1m is in my bank account, I will drop my lawsuit"

And that is where we are at today.

IMO
 
Fuck this BezGOAT wannabe.

Its obviously politically motivated and I'm hoping theres an investigation for this



Progressive groups are concerned that the right-leaning Musk may roll back Twitter’s policies restricting hate speech and misinformation. Musk has said he wants to make Twitter adhere to principles of “free speech” — and has accused the company of censoring conservatives.

Musk has also said he would reinstate Donald Trump’s account on Twitter, after the social network permanently banned him in the wake of Jan. 6 attack on the U.S. Capitol for violating its prohibition on incitement to violence after he praised the rioters. Musk called Twitter’s ban on the 45th U.S. president was a “morally bad decision” and “flat-out wrong.” YouTube, Facebook, Instagram, Twitch, Snapchat and other tech platforms also banned Trump for similar policy violations.
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https://variety.com/2022/digital/news/elon-musk-twitter-layoffs-75-percent-1235410335/
 
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