How costly is Elon’s Twitter purchase? • TechCrunch



How costly is Elon's Twitter purchase? • TechCrunch

Information that well-known expertise denizen Elon Musk intends to maneuver ahead along with his proposed and accepted bid to buy social media firm Twitter was shock information this week; Musk had fought in court docket towards having to shut the deal, arguing numerous points with the corporate to keep away from paying $54.20 per share for the previous startup darling.

Nonetheless, with the deal shifting ahead as soon as once more at a hard and fast worth, we will now evaluate Musk’s buy with information from different social media corporations, successfully permitting us to see how costly — or not — the transaction will show.

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Naturally, we all know the greenback worth of the deal; the $44 billion price ticket has been bandied about for thus lengthy that everybody ought to be capable to recite the determine of their sleep. Once we say costly, nonetheless, we imply relative value in distinction to the values of associated entities. So we’ve dredged up pre-market information from Twitter, Snap,and Meta, parsing numerous key metrics from their respective valuations.

Is Musk paying lots for Twitter, when it comes to what rival corporations are price? I think you already know the reply, at the very least partly, however let’s do the mathematics.

Right here’s what occurs in case you power an organization to simply accept your bid after which later have to shut the deal after the inventory market has offered off.

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