Elon Musk’s Twitter ‘Soap Opera’ Will End in a Takeover: Dan Ives

By Benzinga
Benzinga
Benzinga
April 14, 2022 Updated: April 15, 2022

Tesla CEO Elon Musk sprang a surprise early Thursday by disclosing in an amended filing that he is making an offer to Twitter, Inc.’s board to take the company private.

Tesla Analyst

Wedbush analyst Daniel Ives maintained an Overweight rating and $1,400 price target for Tesla shares.

Tesla Takeaways

Musk’s $54.20 per share offer to take Twitter private is a “historic move” and starts a “Game of Thrones” with Twitter and its board, Ives said in a note.

“Now ultimately we believe this soap opera will end with Musk owning Twitter after this aggressive hostile takeover of the company,” the analyst said.

The analyst sees less likelihood of any other bidders or a consortium emerging. Twitter’s board will be forced to accept Musk’s bid and/or run an active process to sell the social media platform, he said.

There could be questions, Ives said, regarding financing of the deal, regulatory approval and balancing of Musk’s time between Twitter and his other ventures. Based on details from the filing, it is a “now or never bid” for Twitter to accept, the analyst said.

Ives said he expects Twitter’s board to officially review Musk’s filing and letter. There could be many twists and turns in the coming weeks before the potential culmination of the deal, the analyst said.

By Shanthi Rexaline

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