Goldman Sachs Is Advising Twitter On Elon Musk's Offer: Here's What The Tesla CEO Had To Say

Zinger Key Points
  • Goldman analysts estimated a 20.7% downside for Twitter which was trading at $37.83 at the time of publishing the report.
  • The Tesla CEO stated that “it would be utterly indefensible” for the board of directors to arrive at a decision without putting the offer to a shareholder vote.

Telsa Inc TSLA CEO Elon Musk offered to buy 100% of Twitter Inc TWTR for around $43 billion.

What Happened: Musk’s offer to buy the platform for $54.20 per share is a 54% premium over the closing price of Twitter before he began investing in it and a 38% premium over the closing price before his investment was publicly announced.

Twitter’s board is currently reviewing Musk’s offer with Goldman Sachs Group Inc GS and Wilson Sonsini Goodrich & Rosati, as per a report from Reuters.

In an equity research report published in February, Goldman Sachs arrived at a 12-month price target of $30 for Twitter.

Goldman analysts estimated a 20.7% downside for Twitter which was trading at $37.83 at the time of publishing the report. Analysts expressed a lack of confidence in Twitter’s ability to grow its userbase at an accelerated pace vs. prior periods.

Musk shared an excerpt from the report on Twitter, seemingly to highlight Goldman’s low forecast for Twitter.

The Tesla CEO also stated that “it would be utterly indefensible” for the board of directors to arrive at a decision without putting the offer to a shareholder vote.

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Posted In: NewsEventsTop StoriesMarketsMediaElon MuskGoldman SachstakeovertwitterWilson Sonsini Goodrich & Rosati
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