How did Elon pay for Twitter?

How did Elon pay for Twitter? But will he pay the current market price of Twitter stock or will he renegotiate lower?

The markets have just dropped by 1/5th, which changes everything and gives Musk negotiating power.

Despite the intense public focus on the potential Twitter-Elon Musk deal, the market appears to have overlooked a key, developing risk.

Elon Musk revealed a formal offer to take Twitter private on April 14th. Twitter’s board of directors considered other options and reportedly considered soliciting other bids, but better competing bids did not materialize.

After a brief but strong hesitation, the board accepted Musk’s offer almost immediately, highlighting how Musk’s offer was vastly superior to alternatives for Twitter, including remaining a publicly traded company. 

Multiple factors have damaged Twitter’s position since Musk revealed his initial ownership in the firm, putting the current deal dynamic in danger.

1. Nasdaq Has Plummeted about 20%, Implying A Twitter Price of ~$31.40 Per Share Without a Deal

2. Twitter Reported Weak Quarterly Results And Disclosed It Had Overstated Its Users (Again) Just 3 Days After Accepting Musk’s Offer, Suggesting Further Downside That Has Not Already Been Priced In, Should Musk Walk Away

3. Musk Indicated He Will Sell His 9.2% Twitter Stake Should a Deal Not Consummate

4. Tesla shares are under severe pressure, and volatility is expected to stay high throughout this market environment, prompting Musk to reassess his current position in light of the changing financial conditions.

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Lee Spelman

How did Elon pay for Twitter?