Why Twitter Rejected Facebook’s $500 Million Offer
Last month, we learned that Twitter turned down Facebook’s $500 million acquisition offer, and now two reasons are surfacing as to why. The explanations came out after The New York Times covered a Tuesday night event in San Francisco, where Twitter’s CEO and co-founder Evan Williams spoke publicly about the failed sale. The first reason was offered up by Williams himself, and the second came later in an analytical piece written by GigaOm. Both are valid.
Twitter’s explanation: In the NYTimes article, Williams addressed Twitter’s rejection of the $500 million, mostly stock offering. He said:
Its amazing when you can turn down 500 mil. I'd sell everything and be gone in a second!
They didn't turn down 500 million DOLLARS of a shares that could be re-sold to someone else for real dollars. They turned down 3% of an imaginary valuation. So they still of 100% of a different imaginary valuation.
Obviously smart on Twitter's part. I think an all cash offer would've ended a little differently.
I had no idea that Facebook was going to buy Twitter. Very interested in where it is all going.
Twitter has done the right thing by turning down their offer as the money they are offering is not sufficient.
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