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Did Musk buy Twitter
- Thread starter ThomasD
- Start date
HankLloydRight
No Roads
Tam
Well-Known Member
For the practical purpose, that's a yes since there's no more obstacle.
It's now just the formality. Currently, the price is $51.63 so which shareholders would not vote to sell theirs at $54.20?
HankLloydRight
No Roads
Shareholders that don't want Elon to be the Twitter technoking.
My wife is considering buying stock just to vote "no"
Tam
Well-Known Member
Indeed. The question would be whether there are enough activists who would vote for the moral value rather than for the short-term profit.
Remember, in the beginning, the board was resisting the short-term profit and wanted to go for the moral value.
However, due to shareholders' greed pressure, the board has now given in.
stopcrazypp
Well-Known Member
thesmokingman
Active Member
W/o Musk, the craptastic earnings coming up, the SP value would tank to the 30s where it should be. Then Musk could do a hostile takeover and get it even cheaper. The board accepted the offer... some say they did it to avoid the earnings exposure lmao.
Tam
Well-Known Member
Exactly! The resistance was ready. The board just needed encouragement from activists to implement the resistance but I guess without the activists' lead, as the Borg said "Resistance is futile!"
Tam
Well-Known Member
It seems that the market thinks that it's not a done deal because twtr drops instead of rises on Wednesday. "Twitter shares ended trading in New York down 2.1% at $48.68, a big discount to the $54.20 deal price..."
Elon Musk has a history of changing his mind and he could easily pay $1 billion to get out of this deal too.
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www.reuters.com
Elon Musk has a history of changing his mind and he could easily pay $1 billion to get out of this deal too.
Investors fret over potential Musk U-turn in $44 bln Twitter buyout
Investors speculating over whether Elon Musk will complete his $44 billion acquisition of Twitter Inc sent the social media company's shares on Wednesday to their lowest level since the deal was announced two days ago.
www.reuters.com
HankLloydRight
No Roads
He's already lost 10s of $B due to Tesla dropping because of his shenanigans.
If he bails on Twitter, he'd gain most of that back, dwarfing the $1B exit fee.
If he bails on Twitter, he'd gain most of that back, dwarfing the $1B exit fee.
Tam
Well-Known Member
Before the Twitter Board of Directors caved in, Elon Musk sent an unkind message to them about their salaries if he owns them:
www.yahoo.com
That worked! The Board of Directors caved and accepted the buy-out with a condition that he would stop disparaging Twitter during the buy-out process.
Well, if his tactic worked the first time, why should he stop now:
www.nbcnews.com
Elon Musk threatens to cut Twitter board members’ salaries to $0 as his takeover bid morphs into a referendum on the company
The world’s richest man’s Twitter takeover saga is morphing into a referendum on its board, as founder Jack Dorsey tweets his agreement from the sidelines.
That worked! The Board of Directors caved and accepted the buy-out with a condition that he would stop disparaging Twitter during the buy-out process.
Well, if his tactic worked the first time, why should he stop now:
Musk is not supposed to disparage Twitter while trying to buy it. He's doing it anyway.
The tech billionaire continues to tweet at will despite a clause laid out in his acquisition agreement that requires him to avoid disparaging the company.
www.nbcnews.com
Tam
Well-Known Member
There's no more obstacles from the board of directors so it should be an easy yes.
However, the obstacle now seems to come from Elon Musk himself.
When he now just promised to bring Trump back, he gave a cryptic disclosure:
"So this is not a thing that will definitely happen because what if I don’t own Twitter.”
Read: "...what if I don’t own Twitter.”
The stock price immediately closed further down to $47.26!
stopcrazypp
Well-Known Member
There's a pension fund that's suing to block the sale:
Florida Pension Fund Sues Musk and Twitter to Push Takeover to 2025
The pension fund argues that a Delaware law means Musk's deal to buy Twitter cannot take effect for three years.
www.newsweek.com
I don't think it's all on Elon.
Tam
Well-Known Member
Thanks for the info. Very interesting!
Since Twitter is a Delaware corporation even though its headquarter is in San Francisco, California, the pension argues that it should follow the Delaware law that requires
1) a 3-year-wait for an "interested shareholder" which is Elon Musk, or
2) to "win approval from Twitter investors who hold "at least 66 2/3% of Twitter's outstanding voting stock."
Tam
Well-Known Member
Tam
Well-Known Member
The Board of Directors were planning a poison pill and looks like it's now given to them to exercise as needed: Refusing to publicly prove that spam is less than 5% would save the company from being taken over:
stopcrazypp
Well-Known Member
I guess there are multiple obstacles, but the gist I'm getting from this whole 5% thing is Elon trying to back out of the deal (as there wasn't indication he was overly concerned about that previously, after all, the whole rationale for taking it over is to improve the company, including addressing spam accounts). The negative impact on Tesla's stock is fairly obvious, and it seems people in Twitter are not supportive either.
If Elon really wants to buy he can still push things through most likely (presuming he wins the lawsuit also), but the feeling I am getting is his enthusiasm has waned.
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