3.

Discuss restructuring issues that companies experienced after merger or

acquisition.

Restructuring:

Restructuring is a big move a company makes to change and improve how it operates. The main
goals are to reduce debt, work more efficiently, and make the overall business better.

After looking at information from different sources like Wikipedia, Dawn News, The New York
Times, and others, I found some significant issues that came up after SpaceX bought Twitter on
October 27, 2022.

Challenges after Re-structuring:

Human Resource Challenges: Elon Musk, the owner of SpaceX before getting Twitter, had
different ideas about the company. When he finished the deal, he let go of four important people
and hired new ones for those positions. Also, about half (7,500) of the employees were let go
during the acquisition. This shift brings up worries about cultural differences in the organization,
especially when a new administration comes in with different goals.

Legal Challenges:

After Elon Musk let go of employees, he faced legal problems. The people who got fired from
Twitter legally fought for their bonuses and job security.

Financial Challenges:

Financially, some big issues came up after Twitter restructured. The cash flow was negative, the
share price was going down, and sales dropped by 55% in one year.

The negative cash flow kept going because advertising revenue dropped by almost 50%, and
there was a lot of debt. On the first anniversary of the acquisition, Musk said the company was
worth $19 billion, which is a 55% decrease from the initial $44 billion purchase price.
Statistics showed a 30% drop in active users, a 60% decrease in advertising, a 14% dip in
website traffic, and a 38% fall in app downloads.