How much does Elon's Twitter purchase cost?
News that famed tech guru Elon Musk intends to move forward with his proposed and accepted bid to buy social media company Twitter has been a new surprise this week; Musk had fought in court to not have to make the deal, citing various issues with the company to avoid paying $54.20 per share for the former startup darling.
However, with the deal moving forward again at a fixed price, we can now compare Musk's purchase with data from other social media companies, effectively allowing us to see how expensive the deal will be. or not.
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Of course, we know the dollar value of the deal; the $44 billion prize has been announced for so long that everyone should be able to recite the number in their sleep. However, when we say expensive we mean a relative cost as opposed to the values of related entities. So we pulled pre-market data from Twitter, Snap and Meta, analyzing a number of key metrics from their respective ratings.
Is Musk paying dearly for Twitter, in terms of the value of rival companies? I guess you already know the answer, at least in part, but let's do the math.
Here's what happens if you force a company to accept your offer and then have to close the deal after the stock market sells off.
News that famed tech guru Elon Musk intends to move forward with his proposed and accepted bid to buy social media company Twitter has been a new surprise this week; Musk had fought in court to not have to make the deal, citing various issues with the company to avoid paying $54.20 per share for the former startup darling.
However, with the deal moving forward again at a fixed price, we can now compare Musk's purchase with data from other social media companies, effectively allowing us to see how expensive the deal will be. or not.
The Exchange explores startups, markets and money.
Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday.
Of course, we know the dollar value of the deal; the $44 billion prize has been announced for so long that everyone should be able to recite the number in their sleep. However, when we say expensive we mean a relative cost as opposed to the values of related entities. So we pulled pre-market data from Twitter, Snap and Meta, analyzing a number of key metrics from their respective ratings.
Is Musk paying dearly for Twitter, in terms of the value of rival companies? I guess you already know the answer, at least in part, but let's do the math.
Here's what happens if you force a company to accept your offer and then have to close the deal after the stock market sells off.
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