IB Net Payout Yields Model

Twitter: Reject The Musk Offer, For Now

  • Elon Musk offered to take Twitter private with a $54.20 offer.
  • The company has a 20% annual growth plan apparently ignored by most in the market.
  • The deal price doesn't offer a premium valuing the stock at less than just 6x well-documented 2023 revenue targets of $7.5 billion.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
In a somewhat surprise move, Elon Musk made a sudden unsolicited offer to acquire Twitter (NYSE:TWTR) only days after deciding to not join the Board of Directors. The market had a mixed reaction due to the lowball price likely to be rejected by the company potentially leading to Musk selling his 9.2% stake. My investment thesis remains Bullish on the social media site as the offer continues to show the vast value here.

Read the full article on Seeking Alpha. 

Disclosure: Long TWTR. Please review the disclaimer page for more details. 

Update - Apr. 25

The only reason to accept the bid now is a missed quarter. Otherwise, the BoD and CEO appears very weak to accept a deal now when they should be out projecting the growth opportunities in the company, yet they are mostly silent. 

-Twitter (NYSE:TWTR) is said to be re-examining Elon Musk's $43 billion offer after the Tesla founder revealed his financing and social media firm may be more receptive to a deal.
-Twitter is reportedly meeting on Sunday to discuss the offer, according to a WSJ report, which cited people familiar. Twitter (TWTR) is still working to asses its own value, which needs to be close to Musk's bid. The social media company may ask for sweeteners such as breakup fees if the deal were to fall apart.
-Twitter is expected to discuss the bid when it reports Q1 results on Thursday or possibly sooner, the WSJ said.


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