On Thursday, April 14, Elon Musk announced his intention to buy Twitter for $ 54.20 a share.
This is a great story, with lots of fast moving parts. This is a story, which will be even longer in the next few months. So, we thought we’d put together a guide for you, our readers, that will be updated as things continue to come out. Because, Like ElonWe you.
So the strap – it will be a flat ride.
The day after Musk announced his plans to buy Twitter, the company’s board responded with a poison pill. It’s basically the group’s way of saying, “Thank you, but no thanks.”
If Musk or another buyer tries to seize control, Poison Pill has a new “shareholder rights plan” to give some shareholders the right to buy more shares. Moreover, it indicates that Twitter’s group wants to fight Musk’s attempt to gain privacy.
Story so far:
One thousand years ago, on April 4, 2022, Elon Musk announced that he had acquired 9.1 percent of Twitter. The news that the world’s richest man is now (briefly) the largest shareholder on his favorite social media site, raised stock prices and typed on several keyboards.
Musk immediately began asking for suggestions on ways to improve Twitter – what else – tweeting a poll. The company responded by offering him a board seat, which he owns only 15 percent of the company. He said yes at first. Then he said he had not changed his mind. Meanwhile, our resident Twitter and Musk experts, Casey Newton and Liz Lobato, respectively, dug deeper into why Musk was flirting with Twitter and what the consequences would be.
After not finding a place on the Twitter board, Musk has updated his filing with the Securities and Exchange Commission to indicate that he will not be a passive player in the company’s affairs. The language that he would control his assets to only 14.0 per cent of the company has disappeared. In hindsight, this is the first clue that he may be trying to make more of an impact than buying some of the shares he serves as a board member.
Platformers Casey Newton is not the only one who does not believe that Musk will take over Twitter hostilely. After the news broke that Musk had bought a 9.1 percent stake in the company, many people briefly enjoyed the idea that Musk could try to buy the entire company, and eventually got everything he wanted from Twitter.
Casey was right when he said that Twitter’s poison pill rules were not enough to stop Kasturi. But he also said that Musk would continue to troll the company with his tweets – which is certainly a more likely outcome.
Anyone in the market to buy a home knows about the “best and ultimate” offers. In his opening remarks, Musk rightly points out his attempt to buy Twitter. It’s too early to tell whether it strengthens his position or paints him in a corner. But it is clear that he is paying a pretty reasonable premium to Twitter’s shareholders: $ 43 billion to a company with a market capitalization of $ 37 billion.
Musk says Twitter needs to be personal to make the changes that need to be made. This includes the edit feature, open source algorithm, minimal scaling and top menu for removing annoying tweets.
Kasturi is a very rich guy. So, naturally, he would say he is not interested in buying Twitter to make money. He sees Twitter as “the default town square” and wants to open the social media company’s algorithm. He seeks to shape the whole acquisition effort into a kind of charitable struggle to protect freedom of speech.
But even those who do not have the freedom of speech like Musk need to convince shareholders that his purchase offer is for their financial selfishness. If not, what are we really doing here?
Musk is a great Twitter user. He’s even a troll, and Liz Lopoto mentions what he needs to do to get people to take him more seriously. Kasturi has a tendency to shoot from the waist, but many corporate governance experts have told us they doubted he really thought this whole thing.
He did not fund Twitter to buy it and take it personally. He works with Morgan Stanley, but whose guess is that he really listens to them. Musk himself said he would not win in the end. If he succeeds in pressuring Twitter to make the changes he wants, he may withdraw his attempt. All things are possible.
Behind the scenes, Twitter’s team members plan their response to the world’s richest acquisition. There are pre-existing rules in poison pills and company laws that make it very difficult to take control of the musk.
Twitter’s first All-Hands meeting after Musk’s auction was a different one. After serenading staff with the Backstreet Boys and Aretha Franklin, the company said it would continue to evaluate the offer.
Staff told Alex Heath that they were frustrated with the lack of a more detailed response. They worry about the future of the social media site and the possibility of layoffs.
A few hours after announcing his attempt to buy Twitter, Musk had a good-time interview with TED Talk founder Chris Anderson on stage in Vancouver. During the conversation, Musk spoke about his “passion for the truth” and echoed the views he had filed with the SEC about his desire to defend freedom of speech and democracy.
But as Adi Robertson points out, his understanding of freedom of speech seems to be excellent. After examining Musk’s comments and previous attempts by the Twitter leadership against the laws of speech around the world, he concluded that if Musk succeeds in purchasing the social media site, it could raise alarming awareness.
You can not underestimate what the roller coaster ride has been like so far. He buys stock! He joins the group! No, wait, he did not join the group! He can still buy stock! No, wait, he wants to buy the whole McGilla! The subject has more twists than the Shyamalan film. We are not even half way.