The Art of the Deal: Musk's Twitter Acquisition & Takeaways for Business Buyers
The ASE Fleet's Weekly Take Off 45
Hello, their folks,
I hope this message finds you well. Over the past few months, the business world has been closely following the meteoric rise and unique trajectory of Elon Musk's acquisition of Twitter. This journey, filled with unexpected turns, offers invaluable lessons for business buyers in the lower market. Let's dive in!
Elon Musk's Twitter Acquisition: A Quick Recap
Initial Interest (March 26-27, 2022): Musk discussed the "future direction of social media" with Twitter’s founder, Jack Dorsey. By the next day, he hinted at potentially taking Twitter private, joining its board, or even starting a rival company.
Major Stake Purchase (April 4, 2022): Musk announced he had acquired a 9.2% stake in Twitter, worth about $2.89 billion.
Board Membership & Acquisition Offer (April 5-14, 2022): While initially offered a director's seat at Twitter, Musk declined and instead proposed to buy the company for about $43 billion.
Negotiations and Hurdles (April-May 2022): This period saw several pivotal moments. From Twitter adopting a "poison pill" to Musk's demand for data on spam/fake accounts, the acquisition journey was anything but smooth.
Legal Battles (July 2022): After Musk attempted to walk away from the agreement, Twitter filed a lawsuit, prompting a series of legal exchanges.
Shareholder Approval & Deal Proposals (September-October 2022): Twitter shareholders approved Musk's bid. By October, with Musk literally carrying a bathroom sink into Twitter's HQ, it seemed the acquisition was on the brink of finalization.
Key Takeaways for Lower Market Acquisitions
Be Clear on Intentions: Musk's direct communication with Twitter's founder about his interests and intentions paved the way for subsequent moves.
Flexibility is Key: Even in large-scale deals like this, flexibility and adaptability are essential. Musk's ability to pivot from joining the board to making a direct acquisition offer is a testament to this.
Expect the Unexpected: As seen with the sudden introduction of the "poison pill" and demands around data, expect hurdles and be prepared to navigate them.
The Importance of Due Diligence: Musk's concerns over fake/spam accounts emphasize the significance of thorough due diligence before finalizing any deal.
Legal Preparedness: Having a robust legal strategy in place, as seen in the quick responses to lawsuits, is crucial in any acquisition scenario.
Engage Stakeholders: The shareholders' vote on the acquisition highlights the importance of involving and getting buy-in from key stakeholders.
In conclusion, while the scale of Musk's acquisition of Twitter is vast, the fundamental lessons it offers are universally applicable. As you venture into your own acquisitions in the lower market, may these insights guide your journey.
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