Case
PRICE, POWER, OR PRINCIPLE? ELON MUSK’S TWITTER BUYOUT DECISION
INDUSTRY :-
AREA :FINANCE
ORGANIZATION :-
LENGTH :18
LUMS No :02-656-2024-1
PUBLICATION YEAR : 2024
ABSTRACT:
In July 2022, Elon Musk faced a crucial decision about his $44 billion bid to acquire Twitter. Although initially offering a premium price of $54.20 per share, Musk began to question whether he had overpaid, especially given concerns about the accuracy of Twitter s reported data on bot accounts. This issue of price became central as Musk weighed the financial risks of proceeding with the deal against the potential legal consequences of backing out. The case focuses on the high stakes surrounding the valuation of Twitter and Musk s struggle to determine if the acquisition was worth the premium he initially offered. (LUMS No. Assigned 13-Nov-2024) please contact CRU for the supporting files