Elon_Musk_Twitter_Acquisition.pptx rertx

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1. Elon Musk's Bold Takeover: The Twitter Acquisition

2. Introduction to Elon Musk Visionary Entrepreneur: Tesla, SpaceX, Neuralink, The Boring Company Risk-taker and Innovator His Philosophy: Disrupting industries, pushing the limits Setting the stage for Twitter’s takeover

3. Key Life Achievements of Elon Musk Zip2 (1996): First company, sold for $307 million PayPal (1999-2002): Revolutionized online payments, acquired by eBay for $1.5B Tesla (2004-Present): Pioneered electric vehicles, now a market leader SpaceX (2002-Present): First private company to launch astronauts to space Neuralink & Boring Company: Advancing AI-human interface and tunneling technology Twitter(X) : Transforming social media into an AI driven, multi functional super app

4. Twitter Before Musk Founded: 2006, by Jack Dorsey & team Financial Performance: Struggling revenue growth, stagnating user base Political & Content Moderation Issues Why was Twitter a target?

5. The Acquisition Timeline April 2022: Musk buys 9.2% of Twitter shares April 14, 2022: Offers to buy Twitter for $44 billion July 2022: Musk tries to back out; Twitter sues October 27, 2022: Deal finalized Musk takes over

6. Financial Overview of the Deal Total Cost: $44 billion ($54.20 per share) Funding Sources: Personal wealth, equity investors, bank loans Debt Burden on Twitter: Increased financial obligations Impact on Tesla Stock: Investor concerns and market reactions

7. Breakdown of Funding Sources Musk’s Personal Contribution: ~$12.5 billion in loans backed by Tesla shares Equity Investors: Sequoia Capital, Binance, and others Bank Loans: $13 billion borrowed from major banks Financial Pressure Post-Deal: Rising interest payments and operational challenges

8. Revenue & Profitability Post-Acquisition Ad Revenue Decline: Major advertisers pulled out due to policy changes Subscription Model (Twitter Blue/X Premium): $8/month fee to verify accounts Cost-Cutting Measures: Layoffs, office shutdowns, and reduced expenses Projected Profitability: Long-term monetization through AI, payments, and creator programs

9. Financial Metrics & Performance Analysis Pre-Acquisition Revenue: $5 billion (2021) Post-Acquisition Revenue Trends: Decline in advertising, increase in subscription revenue Debt to Equity Ratio: Increased significantly after leveraged buyout Operating Margins: Shift due to restructuring and cost-cutting

10. Financial Risks & Investor Reactions Debt Servicing Challenges: High-interest payments affecting cash flow Stock Market Reactions: Tesla shares fluctuated post-acquisition Regulatory & Legal Issues: Lawsuits and government scrutiny Potential IPO in the Future: Speculation about Twitter (X) going public again

11. Strategic Motives Behind the Deal Free Speech & Content Moderation Reform Turning Twitter into an 'Everything App' (X) Leveraging AI & Monetization Reducing Bots & Improving Platform Trust Key Changes After the Takeover Mass Layoffs & Restructuring Blue Check Subscription Model ($8/month) Relaxed Content Moderation Policies Introduction of Long-Form Content & Payments

12. Post-Acquisition Innovations & Vision Rebranding to X: Transforming Twitter into a multi-functional platform AI Integration: Enhancing user experience with artificial intelligence Financial Services: Enabling transactions, shopping, and more Content Creator Monetization: Revenue-sharing model to attract influencers

13. Future of Twitter (X) Under Musk Super App Vision: Payments, Shopping, AI Integration AI-Powered Content & Engagement Features Potential IPO or Further Investments Musk’s Track Record with Transforming Companies

14. Conclusion & Takeaways Musk’s acquisition was a high-risk, high-reward move Radical changes in business model & operations Uncertain but ambitious future for Twitter (X) Final Thoughts & Q&A