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Twitter Inc TWTR Stock Quote

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Elon Musk Reportedly Ready to Close the $54.20 per Share Acquisition of Twitter

Ali Mogharabi Senior Equity Analyst

Analyst Note

| Ali Mogharabi |

According to various publications including Bloomberg and CNBC, Elon Musk notified Twitter yesterday that he will go through with the purchasing of Twitter for $54.20, above our standalone Twitter fair value estimate of $44 (and above the FactSet consensus estimate of $40). This was confirmed later by Musk’s 13D filing. Trading in the stock was halted for some time. We are raising our valuation of Twitter to $54.20 as the likelihood of either side now stepping away from the transaction is minimal. According to CNBC, the deal could close by the end of this week. As we mentioned in our July note, we think there are various reasons why Musk came back to the table and stuck with his original offer as he and his legal team likely saw the upcoming court battles against the firm unwinnable and/or very costly.

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Company Profile TWTR

Business Description

Twitter is an open distribution platform for and a conversational platform around short-form text (a maximum of 280 characters), image, and video content. Its users can create different social networks based on their interests, thereby creating an interest graph. Many prominent celebrities and public figures have Twitter accounts. Twitter generates revenue from advertising (90%) and licensing the user data that it compiles (10%).

Contact
1355 Market Street, Suite 900
San Francisco, CA, 94103
T +1 415 222-9670
Sector Communication Services
Industry Internet Content & Information
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Employees 7,500

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