Well, it's official! Twitter (TWTR) has accepted Elon Musk's bid to go private at $54.20 per share, roughly a 38% premium to TWTR's share price on April 1, for a transaction size of ~$44 billion.
According to reports, Musk has secured $25.5 billion of fully committed debt and margin loan financing and is providing an approximately $21.0 billion equity commitment. The transaction is expected to close later this year following regulatory approvals and other customary conditions.
More details are expected to be had in a forthcoming 8K filing with the SEC, and members are likely scratching their heads asking why we're discussing this given the portfolio has no position in TWTR shares.
The reason is because we do have a position in Morgan Stanley (MS) shares and the company was the lead financial advisor to Musk, which more than likely means a solid shot in the arm for its investment banking business.
It will be interesting to see if the typical game of "musical chairs" that arises whenever we see a mega deal like this occur. If that proves out, we could see other potential pairings be announced before too long, which would also spur M&A and advisory fees for investment banks. Now to see what happens next.