Updated, 11:12: Twitter is said to be weighing his toxic abs so that Elon Musk doesn’t significantly increase his stake in the company. Wall Street Magazine Reported based on a person familiar with the situation. The defensive strategy, also called a shareholder rights plan, makes it expensive for hostile owners and difficult for buyers.
By allowing existing shareholders to purchase additional shares of the company at a discount, they actually reduce the new adversary party’s ownership interests.
Twitter’s board met this morning after the tech billionaire’s unsolicited bid to spawn a social media giant in a $41.4 billion, $54.20 billion deal. Musk said he would make the company private and “unlock” its “extraordinary potential”.
In an interview at a TED conference in Vancouver today, Musk suggested that his proposal was backed by freedom of speech concerns, as he had previously done in a letter to Twitter’s board of directors, describing Twitter as “a real town square.”
“I think it is very important to have an inclusive arena for freedom of expression,” said Tesla, the founder.
His “last and best” bid to the board was announced in an SEC filing today, and then announced on April 4 that he owns more than 9% of the social media giant, making it the company’s largest individual shareholder. Twitter later announced that the Tesla founder would join the board, but on Sunday, Twitter CEO Parad Agrawal said the decision was reversed and Wall Streeters speculated on Musk’s intentions.
He announced them in a letter to Twitter chief Brett Taylor on April 13. I invest in Twitter because I believe in Twitter’s potential to be a worldwide platform for freedom of expression, and I believe freedom of speech is a societal imperative for a functioning democracy. . However, after making my investment, I now realize that the company in its current form did not thrive or serve this public empire. Twitter needs to turn into a private company.
“As a result, I’m proposing to buy 100% of Twitter for $54.20 per share in cash, with a 54% bonus the day before I invest in Twitter and a 38% bonus the day before my investment goes public. My offer is the best. “This is my good and last offer and if it is not accepted I will have to reconsider my position as a shareholder. Twitter has enormous potential. I will block it,” he wrote.
The stock rose after the reversal and traded at $48 in premarket trading on Thursday.
Musk was sued by Twitter shareholders in Manhattan Federal Court for failing to disclose the amount of his investment. The lawsuit alleges that he made “materially misleading statements and omissions” by not disclosing his ownership until March 24, the termination date required by U.S. securities law. SEC rules say investors must disclose a 5% higher stake within 10 days.
The Twitter board said: “I’m not sure when the launch will be. [Twitter] “It can respond to the letter or the terms of the conclusion of any final contract,” the company said. “The person condemned [Musk] reserves the right to cancel the offer or change the terms at any time, including the amount or form of revision. The Rapporteur may take, directly or indirectly, additional measures he deems appropriate to ensure the continuity of the proposal.”
Musk hired Morgan Stanley as a consultant.
All of Musk-Twitter went through something like a circus when Mercury Musk sent sarcastic tweets about the company last weekend while he was planning to become a director. Agree on the location of your meeting as long as you are alone or as a member of a group. He would not own more than 14.9% of the company’s shares, which is probably why he left.
Today, experts wonder why Musk wants to buy Twitter, what he plans to do with it, and whether he really wants it. According to one analyst, if he doesn’t give in, “Ultimately, we think this series will end with Musk taking over Twitter after this aggressively hostile takeover of the company. “It will be difficult for any other bidders/consortium to emerge and the Twitter Board will be forced to accept this offer and/or take an active role in the sale of Twitter,” said Dan Ives of Wedbush.
“There will be questions about balancing funding, regulation, Musk’s (Tesla, SpaceX) time in the coming days, but in the end, there’s no deal now or nothing for Twitter, according to this document. “The next step is for the Twitter board to formally evaluate Musk’s presentation/letter, and then popcorn time is up as we expect many rewrites in the coming weeks as Twitter and Musk go through this marriage.” Said.
According to CNBC, the Twitter board announced this at a meeting today at 10am Eastern time.
Source: Deadline
Lloyd Grunewald is an author at “The Fashion Vibes”. He is a talented writer who focuses on bringing the latest entertainment-related news to his readers. With a deep understanding of the entertainment industry and a passion for writing, Lloyd delivers engaging articles that keep his readers informed and entertained.
