Initially it sounded like it was a story from the Onion. Really rich guy wants to purchase software company for 44 billion USD, no real investigation whether the company was worth even half of that but the offer was made nonetheless.
I am not the richest man in the world but it is difficult to see how this deal makes any financial sense. After all, the company of his desire only made money in two years since they were listed on the exchange. Ok, ok, those two years were pretty good with a combined profit of approximately 2.6 billion USD.
In order for this to be a good investment I would expect that the return on this investment would need to be at least 10% to beat inflation and make 1-2% profit. Just earning back the principal excluding inflation would require Twitter to make almost twice the amount in a single year that it made in its 2 best years combined.
Perhaps as a private company Twitter could perhaps thin down on some of their staff or locations but that would be a lot of staff.
It will be interesting to see if the Musk finishes the deal or is forced to finish the deal depending on the how things go in court. Elon has made a number of good calls, will Twitter be another success story or less than success and prove Elon is only human.
