Elon Musk’s $44 Billion Acquisition of Twitter

Simpson Thacher and Wilson Sonsini Goodrich & Rosati represented Twitter on the deal, while Skadden, Arps, Slate, Meagher & Flom advised Elon Musk. Davis Polk advised the joint lead arrangers and initial lenders in the acquisition financing. Debevoise & Plimpton advised Qatar Investment Authority.

Twitter announced its acquisition by an entity wholly owned by Elon Musk, for $54.20 per share in cash in a transaction valued at approximately $44 billion. Upon completion of the transaction, Twitter will become a privately held company. The transaction is intended to close in 2022 and is subject to satisfaction of customary closing conditions, including regulatory approvals and Twitter stockholder approval.

The financing for the acquisition comprises of a $6.5 billion senior secured term loan facility, a $500 million senior secured revolving credit facility, a $3 billion senior secured bridge facility and a $3 billion senior unsecured bridge facility. In addition, a margin loan facility in an aggregate principal amount of up to $12.5 billion, is provided to a finance vehicle formed by Mr. Musk in connection with the proposed acquisition of Twitter. The facility will be a term loan secured by a portion of Mr. Musk’s shares in Tesla, Inc.

Elon R. Musk is an entrepreneur and investor, holding CEO positions at Tesla and SpaceX, and is the founder of The Boring Company. As of April 21, 2022, Mr. Musk has an estimated net worth of approximately $280 billion and is the world’s richest individual according to Forbes’ Real-Time Billionaires List.

Twitter is a global social media platform focused on public self-expression and conversation in real time as well as content creation and distribution. Twitter allows registered members to broadcast and communicate through short posts called tweets. 

QIA is the sovereign wealth fund of the State of Qatar.

The Simpson Thacher team included Alan Klein (Picture)  Anthony Vernace, Katherine Krause and Izaak Lustgarten (M&A); Christopher Brown, Jonathan Lindabury, Benjamin Persina and Danielle Robinson (Credit); Greg Grogan, Patricia Adams and Jeffrey Penn (Executive Compensation and Employee Benefits); Ken Wallach, Sunny Cheong and Jessica Asrat (Capital Markets); Sara Razi and Antonio Bavasso (Antitrust); and Mick Tuesley and Jennifer Ho (Regulatory).

The Wilson Sonsini team that advised Twitter on the transaction included: Katie Martin, Marty Korman, Doug Schnell, Remi Korenblit, Lisa Stimmell, Gordon Grafft, Dennise Martinez, Courtney Matteson, Helen Qi and Brandon Mayhew (Corporate/M&A);John Aguirre and Brandon Gantus; Erik Franks, Mike Occhiolini, Dana Hall, John Mao, Andrew Ralston and Michael Rosati (Corporate Finance); Myra Sutanto Shen (Tax); John McGaraghan, Scott McKinney, Matt Staples and Daniel Chen (IP/Privacy and Cybersecurity); Amy Simmerman, Ryan Greecher and Dan Iqbal (Delaware Law); Scott Sher (Antitrust and Competition); Stephen Heifetz and Josh Gruenspecht (Regulatory); Nicki Locker, Evan Seite and Jeremy Gagas (Litigation).

The Davis Polk finance team included partner James A. Florack, counsel Sanders Witkow and associates Phoebe Jin and Jeffrey Hon. The equity derivatives team included partner John M. Brandow, counsel Faisal Baloch and associates Stockton Bullitt and Jonathan Schlecht. Partner Alan F. Denenberg provided capital markets advice. Partner Louis Goldberg and associate Sharanjit Kaur Sandhu provided mergers and acquisitions advice. 

The Debevoise team advising QIA in its $375 million co-investment to help finance Elon Musk’s take private acquisition of Twitter was led by M&A partners Michael Diz, Uri Herzberg and Jonathan Levitsky and included associate Guy Polani, tax partner Peter Schuur and associate Robert Nelson-Sullivan and finance partner Scott Selinger.

Involved fees earner: Faisal Baloch – Davis Polk & Wardwell; John Brandow – Davis Polk & Wardwell; Stockton Bullitt – Davis Polk & Wardwell; Alan Denenberg – Davis Polk & Wardwell; James Florack – Davis Polk & Wardwell; Louis Goldberg – Davis Polk & Wardwell; Jeffrey Hon – Davis Polk & Wardwell; Phoebe Jin – Davis Polk & Wardwell; Sharanjit Kaur Sandhu – Davis Polk & Wardwell; Jonathan Schlecht – Davis Polk & Wardwell; Sanders Witkow – Davis Polk & Wardwell; Michael Diz – Debevoise & Plimpton; Uri Herzberg – Debevoise & Plimpton; Jonathan Levitsky – Debevoise & Plimpton; Robert Nelson-Sullivan – Debevoise & Plimpton; Guy Polani – Debevoise & Plimpton; Peter Schuur – Debevoise & Plimpton; Scott Selinger – Debevoise & Plimpton; Patricia Adams – Simpson Thacher & Bartlett; Jessica Asrat – Simpson Thacher & Bartlett; Antonio Bavasso – Simpson Thacher & Bartlett; Christopher Brown – Simpson Thacher & Bartlett; Sunny Cheong – Simpson Thacher & Bartlett; Gregory Grogan – Simpson Thacher & Bartlett; Jennifer Ho – Simpson Thacher & Bartlett; Alan Klein – Simpson Thacher & Bartlett; Katherine Krause – Simpson Thacher & Bartlett; Jonathan Lindabury – Simpson Thacher & Bartlett; Izaak Lustgarten – Simpson Thacher & Bartlett; Jeffrey Penn – Simpson Thacher & Bartlett; Benjamin Persina – Simpson Thacher & Bartlett; Sara Razi – Simpson Thacher & Bartlett; Danielle Robinson – Simpson Thacher & Bartlett; Mick Tuesley – Simpson Thacher & Bartlett; Anthony Vernace – Simpson Thacher & Bartlett; Kenneth Wallach – Simpson Thacher & Bartlett; John Aguirre – Wilson Sonsini Goodrich & Rosati; Erik Franks – Wilson Sonsini Goodrich & Rosati; Jeremy Gagas – Wilson Sonsini Goodrich & Rosati; Brandon Gantus – Wilson Sonsini Goodrich & Rosati; Gordon Grafft – Wilson Sonsini Goodrich & Rosati; Ryan Greecher – Wilson Sonsini Goodrich & Rosati; Joshua Gruenspecht – Wilson Sonsini Goodrich & Rosati; Dana Hall – Wilson Sonsini Goodrich & Rosati; Stephen Heifetz – Wilson Sonsini Goodrich & Rosati; Daniyal Iqbal – Wilson Sonsini Goodrich & Rosati; Remi Korenblit – Wilson Sonsini Goodrich & Rosati; Martin Korman – Wilson Sonsini Goodrich & Rosati; Nicki Locker – Wilson Sonsini Goodrich & Rosati; John Mao – Wilson Sonsini Goodrich & Rosati; Katharine Martin – Wilson Sonsini Goodrich & Rosati; Dennise Martinez – Wilson Sonsini Goodrich & Rosati; Courtney Matteson – Wilson Sonsini Goodrich & Rosati; Brandon Mayhew – Wilson Sonsini Goodrich & Rosati; John McGaraghan – Wilson Sonsini Goodrich & Rosati; Scott McKinney – Wilson Sonsini Goodrich & Rosati; Michael Occhiolini – Wilson Sonsini Goodrich & Rosati; Helen Qi – Wilson Sonsini Goodrich & Rosati; Andrew Ralston – Wilson Sonsini Goodrich & Rosati; Michael Rosati – Wilson Sonsini Goodrich & Rosati; Douglas Schnell – Wilson Sonsini Goodrich & Rosati; Evan Seite – Wilson Sonsini Goodrich & Rosati; Scott Sher – Wilson Sonsini Goodrich & Rosati; Amy Simmerman – Wilson Sonsini Goodrich & Rosati; Matt Staples – Wilson Sonsini Goodrich & Rosati; Lisa Stimmell – Wilson Sonsini Goodrich & Rosati; Myra Sutanto Shen – Wilson Sonsini Goodrich & Rosati;

Law Firms: Davis Polk & Wardwell; Debevoise & Plimpton; Simpson Thacher & Bartlett; Wilson Sonsini Goodrich & Rosati;

Clients: Morgan Stanley Senior Funding, Inc.; Qatar Investment Authority; Twitter;

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Author: Youness Semri