Elon Musk makes $43B unsolicited bid to take Twitter private • Hacker News Board

Re: Elon Musk makes $43B unsolicited bid to take Twitter private

#591

Post by Maursault » Thu, Apr 14, 2022, 4:08 PM UTC

zwily wrote: post #517

molticrystal wrote: post #241

Just to verify that I understood the concept I looked up the definition of "hostile takeover" from various places, its common theme is taking over a company without approval of the board. The actual offer states [0]: >As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was pub…

That's correct - his offer is not hostile. If they reject it, he could attempt a hostile takeover by buying up enough stock to install his own board.

I think you're right, but you almost nailed it. Musk low-balled because he wants the offer to be rejected, so the stock price dips, so he can buy up enough stock at discount for a hostile takeover.

Re: Elon Musk makes $43B unsolicited bid to take Twitter private

#592

Post by meatsauce » Thu, Apr 14, 2022, 4:08 PM UTC

memish wrote: post #577

gunapologist99 wrote: post #521

So Twitter was at $70 per share a year ago. So what? Jack Dorsey was CEO a year ago, too. The share price was $33 less than a month ago. But, despite an absolutely incredible roller-coaster news cycle, things have been definitely trending down at Twitter ($33/share last month), which was reflected in its share price. The current executive team (and Dorsey) had wasted time focusing on things that didn't matter instead…

Would Elon reinstate Jack to set up a Steve Jobs style comeback story?

Never happen. Jack was part of the problem.

Re: Elon Musk makes $43B unsolicited bid to take Twitter private

#593

Post by Veedrac » Thu, Apr 14, 2022, 4:08 PM UTC

paganel wrote: post #50

I personally think this is excellent, in the great scheme of things, maybe this will open a real discussion about the real oligarchic nature of the US political and societal life at the top. I mean, with tech titan (and second wealthiest man on the planet) Bezos owning the WaPo, the moment the tech titan (and the wealthiest man on the planet) Musk will put his hands on Twitter hopefully will also be the moment of som…

This is not oligarchy. Using that term here makes no sense.

Re: Elon Musk makes $43B unsolicited bid to take Twitter private

#594

Post by objektif » Thu, Apr 14, 2022, 4:09 PM UTC

dageshi wrote: post #564

yabatopia wrote: post #383

Let's ignore personality and societal issues for a moment and look at the value proposition. The 'best and final offer' of $54.20 per share is just too low to be acceptable for major investors. Just over year ago, Twitter shares traded at about $70 per share. Musk's offer is about 25% lower than last years peak. There's no reason to assume Twitter shares can't reach the same levels ever again, nothing much has change…

> There's no reason to assume Twitter shares can't reach the same levels ever again, nothing much has changed fundamentally over a year. The Fed's covid policies in terms of interest rates and money printing had a very high impact on the stock market and stocks. Why else would the market have increased to the degree it did during covid? That is a fundamental reason why it may not see $70 again any time soon.

Or it may. We have no idea however what we know is that twitter is a valuable business and in the rights hands it will be worth much more.

Re: Elon Musk makes $43B unsolicited bid to take Twitter private

#595

Post by anonuser123456 » Thu, Apr 14, 2022, 4:09 PM UTC

marricks wrote: post #407

There’s an account called Elon Jet which uses publicly available information to track Elon's private jet and post take off and landings. Elon offered 5k to the owner to take it down[1]. He has blocked loads of people for mocking or disagreeing with him. Are those actions evil or wrong? Not really, but I also don’t think they’re the actions of an ardent believer in free speech which this thread is making him out to be…

Publicizing the movements of people in real time is not a good faith example of free speech. Banning such accounts is reasonable under any framework of ownership, public or private. There is no good faith need for anyone to know private information like this.

Blocking people from interacting with you on twitter is an exercise of free association, also a right embodied in the first amendment of the US constitution.

Freedom of speech is not the right to an audience, nor is it a right to stalk.

Re: Elon Musk makes $43B unsolicited bid to take Twitter private

#596

Post by anonu » Thu, Apr 14, 2022, 4:09 PM UTC

RustyConsul wrote: post #510

> "if my offer is rejected i will reconsider my ownership in twitter." Thats an immense amount of selling pressure on the stock... This is a threat. He's negotiating with a gun to their head.

On the other hand - the stock was flat over the time that he bought... So not in total agreement with you on the stock impact of his selling. It seems like the only impact is the headline risk - and not so much actual selling pressure.

Re: Elon Musk makes $43B unsolicited bid to take Twitter private

#597

Post by Trufa » Thu, Apr 14, 2022, 4:10 PM UTC

labrador wrote: post #558

Quoted post unavailable.

I don't know how to ask this question without it sounding charged, but please take it as literal as possible and coming with absolutely no aggression:

Do you think removing Trump was pro-democracy? I stand very firmly against being removed on principle of him being an ex-president of the US, this comes from someone who probably thinks he should be prosecuted for (likely) falsely claiming election fraud, or IMHO stretching the definition in his favour.

I think this should be regulated, if not for everyone, at least for highly important accounts, and it should NOT be a private country that has so much power over the next US election.

Re: Elon Musk makes $43B unsolicited bid to take Twitter private

#598

Post by m3kw9 » Thu, Apr 14, 2022, 4:10 PM UTC

RustyConsul wrote: post #510

> "if my offer is rejected i will reconsider my ownership in twitter." Thats an immense amount of selling pressure on the stock... This is a threat. He's negotiating with a gun to their head.

It will hit back at 40$ is as if the Elon pump never happened, is that so bad? However, it does create pressure from “activitists” to sell to Elon. The main thing is: Is Elon a good leader for Twitter. There is a lot of positives because Elon has already proven himself in multiple companies, plus he understands Twitter as much as anyone from his use of it

Re: Elon Musk makes $43B unsolicited bid to take Twitter private

#599

Post by FormerBandmate » Thu, Apr 14, 2022, 4:10 PM UTC

no-dr-onboard wrote: post #561

> As an all-cash offer, this generates for the shareholders a substantial return with NO RISK, and so the board has a serious legal obligation to carefully review this offer and make a decision. What a gut check. I'm sure this is an obvious comment by now, but seeing the board's response to turning down something like this is going to be an olympic level display of mental gymnastics. Exciting times.

They are probably going to desperately try to find a white knight, and fail because Twitter lost the mass market years ago and at this point is a platform for rich people to post incredibly vapid, narcissistic takes about politics and society that say nothing.

They could actually make a phenomenal amount off of subscription revenue tho off of that model, doesn't really make sense for any of the FAANG's strategies but I could see it making a lot of money with competent management. Twitter Blue is one of their best ideas in a long time, but should be more expensive and have more features.

Re: Elon Musk makes $43B unsolicited bid to take Twitter private

#600

Post by aniken » Thu, Apr 14, 2022, 4:10 PM UTC

yabatopia wrote: post #383

Let's ignore personality and societal issues for a moment and look at the value proposition. The 'best and final offer' of $54.20 per share is just too low to be acceptable for major investors. Just over year ago, Twitter shares traded at about $70 per share. Musk's offer is about 25% lower than last years peak. There's no reason to assume Twitter shares can't reach the same levels ever again, nothing much has change…

Another non trivial aspect is his offer price. No one seems to be pointing out the obvious half trolling nature of an offer that yet again includes the number 420. In that respect part of his motivation for doing this is self amusement.