1. FREADERS | S A N D E S H B A N G E R
The saga of
how Twitter became ‘X’
A Satirical Approach

2. FREADERS | S A N D E S H B A N G E R
Nobody took Elon Musk seriously
when he floated two holding
companies last year called
“X Holdings I” and “X Holdings II” in
order to acquire Twitter.

3. FREADERS | S A N D E S H B A N G E R
Elon Musk
X Holdings I
X Holdings II Twitter
Acquisition Sub
100%
Target
Acquirer
Merger in progress

4. FREADERS | S A N D E S H B A N G E R
It was part of a
reverse triangular merger
– a popular way of acquiring
another company.

5. FREADERS | S A N D E S H B A N G E R
In this, owner floats multiple companies &
executes a reverse merger
(target consumes acquirer or it’s
subsidiary)
This ensures owner’s shareholding as well
as the target’s assets are secured.
Follow picture in the next slide
Notice the Triangle (3 companies)

6. FREADERS | S A N D E S H B A N G E R
Elon Musk
X Holdings I
Twitter
100%
Target
Acquirer
Post-merger
Reverse
Triangular
Merger
Elon Musk
X Holdings I
X Holdings II Twitter
Acquisition Sub
100%
Target
Acquirer
Reverse
Merger in progress

7. FREADERS | S A N D E S H B A N G E R
Holding companies are, in essence,
paper companies.
It doesn’t matter what you call them.
They have no real operations. They are
created to hold shares of other companies.
In turn, they help keep the shareholding
structure clean.

8. FREADERS | S A N D E S H B A N G E R
Yes, this is what people thought and
thus laughed off the names of the two
holding companies.
Elon could have very well called them
XYZ Holdings .. who cares?

9. FREADERS | S A N D E S H B A N G E R
But Elon does.
Little did anyone know
Elon would take the joke seriously.
And that’s how you got ‘X’.
Yes, Twitter is now ___ Join
today

10. FREADERS | S A N D E S H B A N G E R
Apparently,
the
Holding
Companies
were
deliberately
called

11. FREADERS | S A N D E S H B A N G E R
Learning Outcomes:
1) Reverse Triangular Merger
2) Twitter deal structure
3) Holding company
4) Some fun

12. FREADERS | S A N D E S H B A N G E R
1) Learn business finance from real data & transactions
2) Build a habit of reading (business articles)
3) Stay abreast with the world
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