Acquisition of Twitter

by Elon Musk
Presented by:
Iram P4207
Ansari 6
Jayesh P4207
Nimisha Sudharsanan P42089
Chavhan
Riya Auddy P42208 9
Shatabdi Roy
P42104
Vidhu Bamra
P42252
Motives of the Problems in the
Acquisition Deal
Timeline of the Pros of the Deal for
Events Elon Musk
Anti takeover measures taken
by Twitter Valuation
Twitter is an American based communications
Terms of the Way Ahead company which the microblogging and social
Deal networking service Twitter.

Introduction On April 14 2022 Elon Musk has offered to

purchase Twitter for $43 bn after acquiring 9.1%
of company's stock for $2.64 billion.
Motive for the
Acquisition
1.to bring freedom of speech and expression on
Twitter
2.to improve the features, fix the algorithm
3.make it an open-source social media platform
Problems that could arise from the deal:

0 0 0
1 2 3

Musk sold Tesla's Tesla’s value may

A huge financial
share to fund the be indirectly linked
risk
deal to Twitter.
Takeover of Twitter
"Love me Twitter"

1.Elon Musk adopted bearhug tactic which was a signal for hostile takeover.
2.Musk gave a sign of Hostile Takeover by issuing Tender Offer
3.Made a uninvited bid of more than $40 billion.
4.. In reaction to all this twitter went for an anti takeover tactics i.e poison pill but
it didn't work out.
5. Then offered tender offer in which he announced his “best and final” offer of
$54.20 a share for the rest of the company.
Twitter adopted "Poison Pill" against the takeover.
Poison Pill is a quick defense strategy used
against a hostile takeover.
It allows the existing shareholders to purchase
shares at a discount which dilutes the ownership
of the hostile party.
Twitter used "Poison Pill" with that diluting 9.2%
stake of Elon Musk in the company and making
this acquisition costlier for him.
Poison Pill made the acquisition costlier for Elon
Musk.
This made him difficult to get votes from Antitakeover
shareholders
Measures taken by
Twitter
 Terms of the Deal
Under the terms of the agreement, Twitter stockholders will receive $54.20 in cash
for each share of Twitter common stock that they own upon closing of the
proposed transaction.

The purchase price represents a 38% premium to Twitter's closing stock price on April
1, 2022, which was the last trading day before Mr. Musk disclosed his approximately
9% stake in Twitter.

Upon termination of the Merger Agreement under specified limited circumstances,

the Company will be required to pay Parent a termination fee of $1.0 billion.
 Terms of the Deal
Elon Musk won’t join Twitter Board

54 % premium over the day before I began investing in Twitter and a 38 % premium
over the day before my investment was publicly announced. prioritize free speech on
the site, open-source its algorithms, eliminate spam and add new features.

Mr. Musk has obtained $25.5 billion in fully committed debt and margin loan funding,
as well as an equity commitment of $21.0 billion. There are no financing
requirements for the deal to close.
 Way Ahead
Musk has a plan to change how Twitter is been run & operated especially on
social and political grounds.

Direct Access to the Public: It has more value in the future toTesla for
business image and business interests
 Valuation of Twitter
Cost of WACC
Debt

Cost of FCFF
Equity
Present Value and Terminal
Value

Elon Musk
paid more
money !!
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