Mergers and Acquisitions: Twitter's Share Prices and Trading Volumes

This report provides insights on the recent proposed acquisition of Twitter by Elon Musk and its effect on Twitter's share price and trading volume. It also explains the concept of “Flip-in poison pill” and the possible motives behind the acquisition. The report includes a table comparing Twitter's daily share prices and trading volumes, a line graph for the month of April 2022, and the reaction of Twitter's share price and trading volume on 4th April 2022.

MERGERS AND ACQUISITIONS

Table of Contents
INTRODUCTION ........................................................................................................................ 3
QUESTION 1............................................................................................................................... 3
Compilation of table comparing Twitter's daily share prices and trading volumes...................3
Line Graph for the month of April 2022....................................................................................6
Reaction of Twitter's share price and trading volume on 4th April 2022..................................8
QUESTION 2............................................................................................................................... 9
Twitter share price and trading volume on 14th April 2022......................................................9
Define the “flip-in poison pill” and its uses.............................................................................10
Premium price offered by Musk's..........................................................................................11
QUESTION 3............................................................................................................................. 11
Reaction of Twitter's share price and trading volume on 25th April 2022..............................11
Which single event had the largest effect weather positively and negatively on Twitter's share
prices and trading volumes in April 2022...............................................................................12
Difference between merger and acquisition...........................................................................13
QUESTION 4............................................................................................................................. 14
Motives for pursuing a M&A deal ..........................................................................................14
Five stages of the “Watson Wyatt deal flow model” of M&As................................................15
CONCLUSION .......................................................................................................................... 17
REFERENCES.......................................................................................................................... 18

INTRODUCTION
In the modern business environment restructuring of the business entities is become a
crucial concern for growth. Recent developments in the global economy has persuaded
business organisations to have innovative and efficient business policies which help them to
survive in this competitive business environment. Competition has increased to a greater extent
that without having a splendid knowledge about different market factors and smart business
tactics it is become difficult for organisations to continue their present business practices.
Business entities are required to have an in-depth understanding of different market policies
which could be used to deal with all kind of business situations in an economical manner.
Merger and acquisition is one of the most popular restructuring technique which could help
organisations to increase their commercial activities size and scale. In the developed countries
mergers and acquisitions become a strategic feature for business entities through which they
can scale up their commercial activities and market value. Merger and acquisition: these two
words are often use interchangeably but they have different meanings associated with them.
Where merger refers towards integration of two separate entities as newly fresh business entity
while acquisition refers acquiring one entity in entirety by an another business entity (Amir and
et.al, 2021). This report delivers valuable insights over recent proposed acquisition of Twitter by
Elon Musk and effect on Twitter's share price before the acquisition announcement and after
that. The concept of “Flip-in poison pill” is also explained in this report in context of the Twitter
company. Reasons for changes in the stock prices of the Twitter company are given in order to
assess the actual situation arises during this acquisition. In last, this report states about the
possible motives which prompted Elon Musk for acquisition of Twitter company as well as
stages of “Watson Wyatt deal flow model of mergers and acquisitions in reference for this
acquisition.
QUESTION 1
Compilation of table comparing Twitter's daily share prices and trading volumes
Prices of financial instruments are keep changing in the financial market. There are
many factors in the business environment which affects trading prices of these instruments.
Business organisations should keep an eye over the changes in their stock prices to track each
and every factor which could affect its share price positively or negatively although there are no.
of factors which cannot be controlled by the organisations (Bartov and et.al, 2021). Likewise,
after the announcement of the acquisition of Twitter company by Elon Musk there are significant
changes in its stock prices and trading volume. Below mentioned table presents a useful
comparison between Twitter's daily share prices and trading volumes before and after the
announcement date on a timeline of key events related to Elon Musk's purchases of Twitter
which is as follows:
S.
No.
Date Closing Price in
US dollar
Trading
Volume
Key Elon Musk Events
1 31/01/22 37.51 17558300 Musk started to build his
stake in the Twitter silently.
2 14/03/22 33.03 17551500 His stake crosses 5 % of

total shareholding but
remain undisclosed.
2 24/03/22 38.82 18281400 Musk started to criticise the
company on its own social
media platform.
3 04/04/22 49.97 268465400 His stake got disclosed to
public which is 9.2% highest
stake of individual investor
in Twitter.
4 05/04/22 50.98 217520100 Elon Musk become a major
active investor of the
company and invited to hold
a seat of director of Twitter.
5 11/04/22 47.01 117814000 Musk refuses to join the
company as a director.
6 14/04/22 45.08 258868300 All of a sudden Elon Musk
offers to buy the Twitter
company.
7 21/04/22 47.08 70413600 Musk declares that he has
organised the required
fund for Twitter acquisition.
8 25/04/22 51.70 176803600 Twitter agrees to acquisition
by Elon Musk for $ 44
billion
9 04/05/22 49.06 28443000 Musk organised funds for
the acquisition
10 06/05/22 49.80 23446300 Musk declares his objective
for the company to increase
its revenue to $ 26.4 billion
till 2028
11 10/05/22 47.26 23816700 Musk states that he will
regularise the former US
president’s Twitter
account if the deal gets
complete
12 16/05/22 37.39 52310700 In an summit, Musk
announced that according to
him 20 % of registered
users of Twitter, the biggest
social media platform are

fake account holders.
13 17/05/22 38.32 44990300 Musk tweeted that deal
cannot be closed until
Twitter management proves
that its figures are accurate.
14 18/05/22 36.85 24010300 Twitter showed a great
interest in the deal by
releasing the fact that it will
be beneficial for the
company to get a major
investor and management
wants to close the deal with
Elon Musk at $ 44 billion.
It can be seen that there is significant growth in the trading volume of daily shares of
Twitter company for almost 93.19 percent on the day when overall stake of Elon Musk got
released to the public which is so huge and the similar thing with the stock prices of the
company (Bergamin and et.al, 2018). There is almost 28.72 % increase in the share price of the
company. The date on which Musk announced to buy the entire company trading volume
increases with almost 55 %.
Line Graph for the month of April 2022
a.) Twitter's closing prices
01/04/2022
03/04/2022
05/04/2022
07/04/2022
09/04/2022
11/04/2022
13/04/2022
15/04/2022
17/04/2022
19/04/2022
21/04/2022
23/04/2022
25/04/2022
27/04/2022
29/04/2022
0
10
20
30
40
50
60
Twitter's Closing Prices
For the month of April 2022
Dates in April
Stock's closing prices

As it can be seen from the above chart is that there is a sudden increase in the stock
price of Twitters on the day 4th of April from $ 39.31 to 49.97 which is almost 27 percent
increase. Then prices were stable for few days and then a slight decrease in the prices. This
shows volatility of the market as how market reacts on every event occurred which can
influence the prices of stocks of the company. When the overall stake of Elon Musk got released
in public market adapt it positively and investors reacts optimistically on that. Investors
increases their stock transactions that affects the demand of Twitter's stock and its prices
(Brodmann and et.al, 2021). This shows how positively and optimistically market has welcomed
this deal of two major market sharks. Again, when the Twitter accept the offer of Elon Musk on
25th April there can be seen a small increase in the stock prices from $ 48.93 to $ 51.70 which is
almost 6 percent. After that prices are stable in rest of the days in April month and there is no
such major movement in prices.
b.) Twitter's trading volume
As it can be seen from the above chart, there is a significant increase in the trading
volume of Twitter's stock on the day 4th of April when the stake of Musk's got disclosed before
public which stands for 9.20 % as an individual investor. Trading volume increased from
12,131,800 to 268,465,400 which is almost 2112 percent increase over the trading volume of
previous trading day. This shows greater volatility of the market and market participants which
can influence the stock market prices (Brown and et.al, 2019). But after that trading volumes of
Twitter's stock witnessed slight decrease and trading volume of stock come on its average
trading volume point. But again on the day 14th of April when Musk all of a sudden made an
offer publicly to buy one of the major social media platform “Twitter” its trading volume of stocks01/04/2022
03/04/2022
05/04/2022
07/04/2022
09/04/2022
11/04/2022
13/04/2022
15/04/2022
17/04/2022
19/04/2022
21/04/2022
23/04/2022
25/04/2022
27/04/2022
29/04/2022
0
50000000
100000000
150000000
200000000
250000000
300000000
Twitter's Trading Volume
For the month of April 2022
Dates in April
Trading Volume of Twitter's stock

increases from 44,306,700 to 258,868,300 which accounts for almost 484 percent increase.
This increase reflects that investors are eager to buy this stock as it have immense revenue
potentiality in future.
Reaction of Twitter's share price and trading volume on 4th April 2022
As soon as the information comes out regarding Musk's stake in Twitter after filling
notice with the U.S. Securities and Exchange Commission which states about his shareholding
in the Twitter company, market reacts positively on this events with higher variation in stock
price and trading volumes of Twitter's shares. Closing share price on first day of April of was $
39.31 and trading volume was approx. 12,131,800 but just the next day closing share price
reached to $ 49.97 and 268,465,400 with an increase of 27 percent and 2112 percent
respectively from the last trading day which is so huge variation. This reflects that there is a
major increase in the no. of investors who are willing to invest in Twitter company and buy its
stocks. Investors expect increased potential return in future and this expectation for having an
increased returns influenced the share price of Twitter. Supply of a particular stock stands for
no. of investors who wants to trade the shares and demand of that particular stock stands for
no. of investors who wants to own the stock. And the difference between these two factors
causes the share price to rise until an equilibrium price is reached where both the buyers and
sellers of that stock agrees on a particular stock price. The more the price move, more will be
the disparity between the demand and supply of a particular stock (Carril-Caccia and et.al,
2022).
This increase in the Twitter's share price and trading volume depicts that more and more
investors want to invest their money in the company because they expect potential returns in
the future on their investment. If a particular stock has a higher trading volume which reflects
that stock is witnessing buying pressure from the investors in the financial market as investors
demand for that stock pushes the stock prices higher and higher. Stock volume represents the
no. of stocks of a company trading in a specified time period. Higher the trading volume, higher
the buying pressure faced by the company. Increase in the daily trading volume often signifies
high volatility but this is not for always as increased daily trading volume also signifies increased
liquidity which can moderate large price swings and reduce volatility. An increase in the daily
trading volume is generally can be taken as bullish trend while a decrease in daily trading
volume of a particular company's stock can be taken as bearish trend which can reflect effect on
the movement in share prices in the prevailing price trends. Increase in the share price and
trading volume of Twitter's stock depicts that investors in the market are willing to invest their
moneys in the company in return for higher expected income (Chang, J., 2020).
QUESTION 2
Twitter share price and trading volume on 14th April 2022
The information transpires Musk's stake in Twitter after receiving the notice of the
Securities and Exchange Commission of UK which explain that the shareholding in Twitter
company, market shows the negative effect with low prices but positive shows trading value.
The share price changes at every moment. The closing share price of 13th April 2022 was
$45.85 and trading value was 44306700 but the next day that is 14th April 2022 the opening and
closing share price was $48.37 and $ 45.08 and trading value was reached up to 258868300.
The share price was down of 14th April with decreases percentage (-1.67%) but the volume was

increased 484.26% in compare to last year which is so large variation. This changing share
price and volume shows that the investors will increased in future who receive the high returns.
The share price was effected of trading value. The investors will invest in company due to
generate high income rather than decreasing share price. The supply of particular stock stands
for the investors wants to trade share but the demand of particular stock means the investors
wants to buy the own share. The supply and demand factors are interrelated with each other
because if the share price too increases until an equilibrium price then purchaser and seller of
that share agrees on a particular stock price. The higher difference of stock price will show the
inequality between demand and supply of a particular share (Chen and et.al, 2022).
The increasing trading value of Twitter shows that investors wants to acquire the shares
of that company so that they earn higher income and surplus income can reinvest in shares, this
process is known as double return value investment income. The Twitter company generates
the revenue for the shareholder of two types: to sale the advertising services, which generates
the revenue from data licensing and other services. The core competitor of Twitter is Facebook,
Snap and you tube. It provides ways for advertisers to develop an audience interested in the
products and services they are offering. The another part of the revenue is data licensing.
Twitter provides the platform of its partner to sell data licenses. The share price and trading
value change daily but the investors choice Twitter company because the investors bears low
losses. The top five Twitter shareholders own more than 37% of the company. The total
revenue generated by twitter in the year of 2021 is $ 1.57 billion which is more than 22% from
the last year 2020 (Gandhi and et.al, 2018).
Define the “flip-in poison pill” and its uses
It is strategy which is used by acquired firm to stop a bitter takeover attempt. This
strategy allows existing shareholders, not to obtain shareholders, to buy surplus share in the
company targeted for acquisition at a discount. Due to crowd with new stocks the value of the
old shares goes down which is already bought by the acquiring company, the ownership
percentage also reduced and becoming very difficult and more expensive for the acquirer
company to gain control. This strategy is profitable for those investors who buy the fresh stock
to gain profit instantaneously from the difference between the market price and purchase price.
The poison pill makes a different types of strategy that companies can use to maintain from
being acquired (Goksoy, A., 2019). This policy become the company revolting to likely acquirer
and may harm the company. There are various types of poison bill which are used by company
they are as follow-
1. Flip over poison pills
2. Back end plans
3. Preferred stock plans
4. Voting plans
The provision of Flip in poison pill is founded in a company character. It is a paper
document which tells how to company run in future. This policy tells those company which is
hostile acquirer that they will face difficulties. The acquirer buys the shares before the takeover,
when they exceed the limit to obtain the outstanding share such as 20% to 50%. If the
purchaser set off a poison bill by collect more than the limit level of share, it becomes risky of
target company. When the existing shareholders purchase more share then they adopt the flip
in poison bill strategy. The shareholders receive the shares of target company at discount price.

The target company also use this strategy when the shares are increased and company wants
to reduce the share price. The company adopt this type of strategy to a decreased the
percentage of ownership of the acquirer company. This policy allows only existing shareholders
to buy the shares not acquiring shareholders (Hassen and et.al, 2018).
The poison bill strategy is adopted by the Twitter because it gives opportunities to
existing shareholders of Elon Musk to purchase the share of Twitter at discount rate so that
holding of new shareholder’s decreases. It is also known as shareholder rights plan. The poison
of Twitter's maintains in one place for less than one year. The discounted share price holder will
be blocked for one year for purchase another share. If any shareholder purchases more than
15% shares of Twitter, then pill would be triggered. It was right decision at right time which is
taken by Twitter because the main objective is to give the full consideration of their investment
to the shareholders and decreasing the one person gaining control of the company without
paying shareholders a best control premium or giving the board more time.
Premium price offered by Musk's
The share price of 25th April 2022 was 51.70 and trading value of that day was
176803600. It was the higher share price of the Twitter when management of the Twitter was
agreed for the post acquisition by Musk. Twitter was more prospective. Musk is the second
largest shareholder. They offered high premium because after the acquisition, the company
cannot serve for the long term and not serve the societal imperative in its current form. They
offer a price higher than trading value because Musk wants to acquirer the Twitter company.
They want to increasing the number of shareholders so that value was increased of the existing
shareholders. The amount of premium means the difference between par value and the selling
value. The Twitter company was agreed at $54.20 so that the existing shareholder of Twitter
agrees become the shareholder of Musk. Musk has said the Twitter needs to be taken private to
grow and become a genuine platform (Kothari and et.al, 2021).
The share price of the Twitter at the time of acquisition $51.70 but if Musk's offer $54.20
per share than it is above par value and the premium was the difference between $54.20-
$51.70 that is $2.50. The premium was $2.50per share. They offer a higher price than the
trading value because Musk's wanted to increase the value of company.
QUESTION 3
Reaction of Twitter's share price and trading volume on 25th April 2022
On 25th of April 2022, after filing the disclosure stating sources of finance for the deal
with Twitter, management board of Twitter confirmed the deal by giving approval for the same.
After this news has disclosed the financial market witnessed an upward movement in the share
prices and daily trading volume. Market share price of Twitter's stock raised to $ 51.70 which
was earlier on $ 48.93 and trading volume of its shares raised to 176,803,600 from 76,504,500.
There is an increase with approximately 6 percent in the share prices and 131 percent increase
in daily trading volume of Twitter's shares (Malla and et.al, 2022). Increase in the share price of
the company's stock is not a major one but still this increase depicts that few of the market
investors are willing to purchase company's share as they are anticipated for higher future
returns in form of either increase in the buying prices of shares or in other form. They want to
make investment by purchasing the company's securities as they are expected that company
will earn higher revenue in the future and their money will return with high returns over the

investment. While increase in the daily trading volume depicts that company's stocks are facing
buying pressure in the market as there is a significant increase in the no. of investors.
By providing approval for such a great deal, management seeks high benefits in the near
future in the form of higher market value of the company. To hand over the entire company to
another market shark and business magnate will be a big decision for any company.
Management board of Twitter seeks greater potential for the company itself and its engagement
team by this acquisition of the company by the Elon Musk in future. Acquisition of the one
company by another can be a better way to enhance the management capabilities and a super
capable leader which can lead the entire company to a specific direction. Merger and acquisition
between two major market players can result into a greater access to experts which can provide
specific expertise to the company to focus its concerned areas and to improvise those areas.
This also result into fresh ideas and new perspective which can lead the entire company into a
new and specific direction. Twitter is a well-known major social media platform in the world, this
acquisition will provide the company immense benefits and opportunities through which its
market value will overall increase to a greater extent. Investors are willing to invest their money
after evaluating major impacts of this acquisition of the company by a renowned business leader
(Ndlovu, P.N., 2022).
Which single event had the largest effect weather positively and negatively on Twitter's share
prices and trading volumes in April 2022
According to the data available and sources analysis when Elon Musk revealed his
investment in Twitter as an individual on the April 4th, has significant positive impact on Twitter's
share price and daily trading volumes. There is an outstanding growth in the no. of investors
who actually want to buy company's shares. The big reason can be for such great increase in
the Twitter's share price and its daily trading volume that all the market investors are shattered
after disclosure Musk's investment in the company on an individual basis. Disclosure regarding
his stake in the company shocked investors as this is a huge investment by one individual in a
particular company and Musk is such a renowned business tycoon in the business world. There
can be a multiple opportunity for the company to grow when the company have such a major
investor holding higher shareholding in the company. Investors welcomed this event
optimistically that this might become a golden chance to earn greater value for their investments
(Nikani, A., 2022).
Difference between merger and acquisition
Merger can be defined as actively combination and integration of two separate business
entities into one fresh business entity whereas acquisition can be defined as the process of
takeover of one company by an another company. In legal terms, merger refers to the
consolidation of two different entities as one legal and separate entity and for it requires to have
a separate legal ownership. In merger both the entities have actively engaged in the
management structure while in the acquisition there is no such need for having a separate legal
ownership as one entity consumes the another entity in its entirety. In acquisition there is no
new entity emerges. As well as merger refers friendly dilution of both the entity as one new
entity whereas acquisition denotes forcibly takeover of another company. Where merger can
impact positively on the employees of both the companies as merger can be used as a
significant tool by the companies in order to obtain benefits such as access to expertise, greater
perspective and savings in operational costs whereas acquisition can impact negatively on the

employees of both the companies as acquisition can seem like having lose of control in entirety
on its resources, assets, plan and procedures further and a new distinguish body will continue
its business (Orlova and et.al, 2020).
By assuming that Elon Musk succeeds in his intentions and his involvement with Twitter
represents an acquisition and not a merger as there is no such actively collaboration and
cooperation of both the entity since being as a major individual investor of Twitter, Elon musk
will lead the company. Similarly, there is no such change in legal status of the company and
company will be continue as earlier but just the change in its ownership. In acquisition there is
no such new and fresh company emerges similarly there is no such formation of entirely new
company as Twitter will continue in future as earlier except there will be a change in its
ownership and management. Thirdly it can be said from the analysing of above events that has
been occurred earlier there is no such friendly merger of both the company as pressure has
been created on the management board of Twitter to accept the acquisition by criticising it on its
own social media platform on scam users’ grounds and possibilities of increase in its revenue.
On the above distinctives, it can be argued that Elon-Twitter case is a case of acquisition and
not a case of merger and this acquisition cannot be considered as an effective and friendly
corporate restructuring strategy as it can impact negatively on the employees and its human
resources as a forcibly takeover by a giant business entity (Palouj and et.al, 2020).
QUESTION 4
Motives for pursuing a M&A deal
A company can have various motives to participate in mergers or acquisitions. Eight
critical motives divided into three categories are distinguished by (Johnson et al., 2015). The
three categories of these motives are namely strategic motives, financial motives and
managerial motives (Sun and et.al, 2022).
Strategic Motives: These are related to enhancing the competitive advantage of the company.
Competitive advantage may be defined as “achieving above average performance in an
industry”. A company has to adopt a generic strategy in order to obtain a competitive
advantage. There are three different generic strategies: cost leadership, differentiation and
focus. Following motives are labelled as strategic motives.
 Consolidation: It can have different beneficial effects. It increases the market power
because it reduces the number of competitors within an industry. It additionally increases
performance by sharing resources and reducing redundant capacity and resources. And
it also increases the bargaining power with suppliers and enables economies of scale
benefits, which leads to lower costs.
 Capabilities: These capabilities concern the specific knowledge competences that is
needed for the development and introduction phase of a new product or technique.
 Extension: M&A can be used to extend a firm's presence in existing markets, products or
services and geographical regions (Swidler and et.al, 2019).
Financial Motives: These are related to optimising the use of financial resources within the firm,
rather than improving the actual operations within a market. Following motives are labelled as
financial motives.
 Tax efficiency
 Asset stripping
 Financial efficiency

Managerial motives: Strategic and financial motives for mergers and acquisitions mentioned
above serve the shareholders' interests in general. Mergers and acquisitions may not serve
shareholders' interests but only serve managers' interests in some cases. Therefore, these self-
serving motives for managers' interests are called managerial motives. M&A can fulfil personal
ambition of a manager in three different ways (Thompson, R.B., 2022).
 The financial compensation of a manager can be tied to the short term growth or share
price of a firm. The short term growth and share price of a firm might be more easily
increased by participating in acquisitions with more risk compared to a more stable long
term organic growth.
 The participation in large acquisitions attracts media attraction which leads to
opportunities for a manager to boost personal reputation by appearances and interviews.
 Acquisitions cause changes within the structure of an organisation which presents
opportunities for managers to provide befriended colleagues more influence and
responsibilities in order to create loyalty (Tremblay, A., 2020).
In a TED interview, Musk stated that he had aspirations for Twitter to become a “platform
for free speech around the globe”, calling free speech a “societal imperative for a functioning
democracy” and insisting that he has not made the offer to increase his wealth. He also stated
in the offer letter that “since making his investment, he now realises the company will neither
thrive nor serve this societal imperative in its current form. Twitter needs to be transformed in a
private company. It has extraordinary potential. He will unlock it”. From his above lines, it is
concluded that strategic motives are the reason which inspired Elon Musk to pursue a takeover
of Twitter (Warter and et.al, 2020).
Five stages of the “Watson Wyatt deal flow model” of M&As
Merger and Acquisition offers have turn out to be a part of everyday business, but
maximum offers fail to achieve their intended goals. Merging two organisations is an inherently
tough process that needs making effective plans. A well-managed, based approach results in
faster integration, lower expenses and higher achievement.
The Watson Wyatt Deal Flow Model, one of the M&A methods, lays out five parallel connected
stages:
 The formulate stage: It involves setting out business objectives and growth strategies.
When the firm chooses for growth strategies that also incorporate inorganic growth
strategies, acquisition criteria should be analysed in order to find the firms that fit the
needs of the acquirer. The firm will not meet the intended strategic goals, if these criteria
are not in line with the firm's strategies (Yan, J., 2018).
 The locate stage: It involves seeking target companies along a logical path. Firms
identify markets and potential targets that could be beneficial for meeting strategic or
financial goals within this phase. The key activities in this phase are locating and
assessing the firm.
 The investigate stage: It involves performing due diligence to explore every possible fact
of the target company. Due diligence should be exercised in the financial, operational,
legal, environmental, cultural and strategic arenas. It involves setting up negotiating
parameters, determining bid price, and initial integration implementation plan.
 The negotiate phase: It involves addressing transition services. In this stage the price,
performance, people, legal protection and governance are the considerations. The

factors affecting this stage includes culture, time pressure, experience and power
dependence relationship.
 The integrate stage: Both the organisations should decide how to keep focus on
customers, how fast to move and how to communicate with stakeholder groups. The
integration phase is the actual process of planning and implementing objectives with the
company's processes, people, technology and systems (Yang and et.al, 2022).
The locate stage is the stage at which Elon Musk was with regard to his interest in taking over
Twitter, during April, 2022. This phase entails identifying markets and potential targets that
could be beneficial for meeting strategic or financial goals. Hereby the firm should engage in a
due diligence of the firms whereby the strategic similarity must be analysed. The search and
locate criteria should be in line with this strategic similarity if the firm wants to have a higher
chance of success (Zhang and et.al, 2022).

CONCLUSION
As concluded by the above report, merger and acquisition are two different corporate
strategies which can be used in increase the business size and scale of business entities and
obtain economies of scale. These words are commonly used interchangeably but these two
words have separate and distinguish meaning associated with them. The above report clarifies
the difference between these two words clearly. As well as this reports presents several key
events that has been occurred during the disclosure of musk's stake till the management of
Twitter show its interests in the deal and respective changes in Twitter's share price and its daily
trading volume in tabular form. Further data of changes in Twitter's share price and Twitter's
daily trading volume are presented in chart form to dictate the changes distinctively. It spells out
clearly reasons for changes in market share prices of Twitter's stock and its daily trading volume
and explanation provided for the strategy of “Flip-in poison pill” adopted by Twitter in order to
restrict Elon Musk to acquire more shareholding in the company and its prospective uses. In
last, this reports presents possible motives for this acquisition deal and details of each possible
motive are critically discussed. Lastly, five stages of “Watson Wyatt deal flow model” of mergers
and acquisitions are described efficiently stating the expected stage Elon Musk was with regard
to his interest in taking over Twitter during April 2022.

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