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Deal Offer Musk started buying shares of American social media company Twitter, Inc. in...

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Accounting

Deal Offer

Musk started buying shares of American social media company Twitter, Inc.

in January 2022, becoming its largest shareholder with a 9.1% ownership by April.

by April, becoming its largest shareholder with an ownership of 9.1% made an unsolicited offer to purchase the company Price NOSO, bil 4/13/2022 12/31/2021

Twitter 45.85 800.6

Tesla 340.8 1,033.5 Musk 172.6

Offer price 4/14/2022 Acquisition price 43.0 billion Price per share 54.20 Deal

Q1. 5 What is the level of premium offered? Premium Deal

Q2. 5 The typical premium offered in a merger deal is 30.0% of stock price In your view, from the acquirer's perspective, why do you think this offer departs from the standard, why? Deal

Q3. 20 In your view, from the target's perspective, would you recommend shareholders to accept this? Justify your ans with numbers

1. based on the share price performance from Jan., see tab TWTR in this workbook

2. based on IS and BS of TWTR, p. 63 to 66 (pdf)

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