On Monday, it was announced that the Twitter board has agreed to a $44 billion buyout offer from billionaire Elon Musk…(CNBC)
- Under the terms of the deal, Musk is paying $54.20 per share in cash for Twitter. The announcement ended a weekslong saga Musk kicked off when he bid to buy the company at that price, which he called his “best and final offer.”
According to the release, Musk is providing about $21 billion and has secured $25.5 billion of debt and “margin loan financing,” Christopher Bloomstran noted the oddity of the financing on Twitter…
- “Wow. Financing secured with $25.5 billion of new debt. I haven’t seen the rate but at 5% the interest alone exceeds 2021 EBITDA and 88% of expected 2022 EBITDA. Go private at 9 times sales! Total paid in capital was $9 billion. Better grow fast. The question is: When’s the IPO?”
- Alex Heath at Verge reports that Parag Agrawal, the CEO of Twitter, said that there were no plans for layoffs… “at this time”
There is definitely more to this story that I’m sure will unfold over the next few weeks and months. Considering how crazy this story has already been this last month I have a feeling this is going to get more bizarre before it starts making sense…
BONUS: There has been a lot of chatter that Musk will re-activate President Donald Trump’s infamous Twitter account. However, Trump tells Fox News thanks, but no thanks. He is sticking with his social media company Truth Social.