Abstract
In a surprise capitulation, the board of Twitter has announced it will support a takeover bid by Elon Musk, the world’s richest person. But is it in the public interest?
Musk is offering US$54.20 a share. This values the company at US$44 billion (or A$61 billion) – making it one of the largest leveraged buyouts on record.
Morgan Stanley and other large financial institutions will lend him US$25.5 billion. Musk himself will put in around US$20 billion. This is about the size of a single bonus he is expected to receive from Tesla.
In a letter to the chair of Twitter, Musk claimed he would “unlock” Twitter’s “extraordinary potential” to be “the platform for free speech around the globe”.
Musk is offering US$54.20 a share. This values the company at US$44 billion (or A$61 billion) – making it one of the largest leveraged buyouts on record.
Morgan Stanley and other large financial institutions will lend him US$25.5 billion. Musk himself will put in around US$20 billion. This is about the size of a single bonus he is expected to receive from Tesla.
In a letter to the chair of Twitter, Musk claimed he would “unlock” Twitter’s “extraordinary potential” to be “the platform for free speech around the globe”.
| Original language | English |
|---|---|
| Pages | 1-5 |
| Number of pages | 5 |
| Volume | 2022 |
| No. | April |
| Specialist publication | The Conversation |
| Publication status | Published - 27 Apr 2022 |