An Examination Of The Legal And Financial Implications Of Elon Musk’s Acquisition Of Twitter

C. Sri Lalitha Madhuri, ICFAI Law School

ABSTRACT

Elon Musk's acquisition of Twitter in 2022 represents a pivotal moment in corporate mergers, with significant legal and financial implications. This paper explores the intricacies of the acquisition, analyzing regulatory compliance, shareholder impact, and antitrust considerations. Financially, it examines the transaction's valuation, funding mechanisms, and market reactions. The study also delves into the strategic motivations behind Musk's purchase, including potential changes to Twitter's operational and governance structures. By providing a comprehensive analysis of these aspects, the paper aims to offer insights into the broader consequences of high-profile tech acquisitions.

This analysis explores the complexities surrounding Elon Musk's acquisition of Twitter. We'll dissect the deal's structure, focusing on the use of leveraged buyout financing. Additionally, we'll examine potential roadblocks posed by antitrust regulations and the broader impact on Twitter, including content moderation and user experience.