Why Did Musk Buy Twitter?
Elon Musk has stated that he is buying Twitter for the purpose of protecting free speech. This is fascinating because it changes the premise of why the company is being bought. There are two general types of buyers: strategic buyers and financial buyers. Strategic buyers are acquiring another company for accretion to their stock value and/or for perceived synergies. Financial buyers purchase a company for the purpose of gaining a return on their investment in the company. I do not think Musk falls into either of these categories. He is buying Twitter to protect free speech which does not fit into the above categories.
Ultimately, though I do not believe this altered the process all that much because all of the fine investment bankers at Morgan Stanley produced all of the valuations with help from Goldman Sachs, JP Morgan, and three others. The valuations were consistent with market sentiment, although a bit below a standard premium, yet still a great offer for shareholders.
One other point worth looking into is how Musk is financing the deal. It does seem like he is looking for other capital to help fund the buyout, but at the moment there is a real reason to be a tad more cautious around Tesla stock.