Twitter Inc. 2023

Abstract

The case study Twitter Inc. 2023 – Barbarian at the helm? Elon Musk’s first hundred days at Twitter focuses on Elon Musk’s 2022 buyout of Twitter Inc. and the first hundred days after the takeover. It is the story of the at the time richest person in the world completing the second largest buyout in history. Musk offered to buy Twitter in April of 2022 for $44 bn. Twitter adopted a poison pill anti-takeover defense to prevent the hostile takeover but ultimately accepted his offer. Several months after both parties signed the merger agreement, the deal came to a standstill as the actual level of users on the platform was disputed. Musk terminated the agreement shortly thereafter and Twitter sued him for it. It seemed like the deal would fall through, but only weeks before the court date Elon Musk changed his mind. On October 27th, 2022 he conducted a leveraged buyout to takeover Twitter. The first hundred days have been volatile and the future of Twitter is unclear, but as the period comes to an end on thing is for certain, Musk needs to make a decision on where to go from here. The buyout of Twitter has proven to be a new challenge, his options are limited and the clock is ticking against him. Both during and after the buyout, the case captivates with unexpected turns and questionable decisions from the new owner of Twitter. The case study discusses topics from finance, strategy and management in the interconnected M&A environment. It is recommended for use as a functional case for the examination of a real-world M&A deal. The implications for the future of Twitter and the social media industry complete a highly relevant, interesting and enriching case study.

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