.jenwieczner reports that many people on Wall Street are wondering why Elon Musk would want Twitter, an albatross whose costs are growing twice as fast as its sales
Elon Musk in March 2022. Photo: Patrick Pleul/POOL/AFP via Getty Images For years among tech dealmakers on Wall Street, as they surveyed the burgeoning social-media landscape for M&A targets, one question had them stumped: How do you solve a problem like Twitter?
But then, of course, along came Elon Musk. When Twitter’s board abruptly changed its tune on his offer to buy the company — from poison pill to LFG!! — bankers surmised what had happened. Goldman Sachs, on behalf of Twitter, had gone out and asked every other potential buyer it could think of to swoop in and make a better deal — and gotten a hard pass. “They weren’t able to find anyone else who was remotely interested,” the banker told me.
“I’m not quite sure why he’s done it,” said Euan Rellie, the co-founder and managing partner of BDA Partners, an M&A advisory firm . “We’ve been scratching our heads as to how the banks can justify lending the money for a business proposition that’s not great.” If there’s one thing bankers understand better than avarice, it’s ego, and on Wall Street that remains the most plausible explanation for Musk’s moves. “It’s the ultimate vanity investment. It’s a trophy asset,” Rellie said. “If it were up to me, I wouldn’t have done the deal.”
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