The Twitter takeover is going to end up fuelling multiple case studies. It’s hard to make financial sense of the terms of the acquisition. Consider an entity with $5 billion (2021) revenues, net income of minus $221 million (meaning loss), free cash flows of $630 million, interest costs of $50 million and a revenue compound annual growth rate of just under 15 per cent (2016-21). How much would you pay? Any MBA student who valued this at $44 billion would get an F.
Post-this leveraged buyout, Twitter has to service debt of $14 billion due to the deal. It will
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