M&A · Tech · Services-Computer Programming, Data Processing, Etc.
Elon Musk to acquire Twitter, Inc.
Announced Apr 25, 2022 · Closed Oct 28, 2022
Deal value$44.00BEV $44.77B
Premium38.0%To unaffected price
EV / Adj. EBITDA—8.8x EV / Revenue
ConsiderationAll cash$54.20 per share
Transaction
- Acquirer
- Elon Musk
- Target
- Twitter, Inc. (TWTR)
- Buyer type
- Strategic
- Offer price per share
- $54.20
- Enterprise value
- $44.77B
- Status
- Closed Oct 28, 2022
Deal protections
- Break fee (target pays)
- $1.00B · 2.3%
- Reverse fee (buyer pays)
- $1.00B · 2.3%
- Go-shop
- No-shop
- Financing
- Committed · Morgan Stanley, Goldman Sachs
Advisors
- To the acquirer
- Not disclosed
- To the target
- Goldman Sachs, JPMorgan
Sector context · Tech
- Comparable deals
- 65 in the prior 24 months
- Premium
- 38.0% vs. 31.1% sector median
- EV / Adj. EBITDA
- Sector median 17.4x
- Break fee
- 2.3% vs. 3.0% sector median
Timeline
- AnnouncedApr 25, 2022
- Proxy filedMay 17, 2022
- Definitive proxyJul 26, 2022
- Shareholder voteSep 13, 2022
- ClosedOct 28, 2022
Valuation · fairness opinions
Future share priceGoldman Sachs$45.50$60.10
Discounted cash flowGoldman Sachs$39.10$60.90
Precedent transactionsGoldman Sachs$50.30$62.90
Premiums paidGoldman Sachs$46.40$56.60
Trading comparablesJPMorgan$49.70$57.50
Precedent transactionsJPMorgan$50.00$63.40
Discounted cash flowJPMorgan$36.50$57.60
Offer $54.20
Implied value per Twitter, Inc. share by analysis, from Goldman Sachs and JPMorgan.