Elon Musks recent highly public back and forth withTwitterhas given the market whiplash.
The deal placed a38% premiumon Twitters then-share price.
This will not benefit shareholders on either side.
Much has changed since Musks April offer.
Technology stocks have taken a beating due tofears of a recession.
Both sides should be open to renegotiating the deal to protect the companys current and future shareholders.
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Acquisitions are generally strategic moves made by a company to bolster its position within an industry.
These deals are typically done with the intent of mutually maximizing shareholder value.
As it currently stands, however, the Twitter deal will not mutually maximize shareholder value.
In fact, the gain of one set of shareholders could come at a clear loss to the other.
The feud has also taken a significant toll onemployee moraleand retention at Twitter.
Protecting shareholders
Achange of heartabout an acquisition is certainlynot uncommon.
And safeguards are put in place to prevent deals from collapsing.
In the case of the Twitter deal, there is aUS$1 billionbreakup fee.
Under normal circumstances, this would have been enough incentive for both parties to complete the deal.
