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

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

#641

> "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.

Seems like an amazing move by Elon. Buy a sizable portion of the business to hold hostage, and then make the company an offer that they essentially can’t refuse because of fiduciary responsibility. If they reject Elon’s offer the stock price will sink like a rock. They pretty much have to take it.

That's not how it works, the board would look at the long term value of the company, not the current price or what it will be in the next few weeks if Elon sold.

For instance Twitter stock was $60 last october, if they didn't ask for at least that it would be shortchanging shareholders and also imply a declining company.

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

#642

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…

And yet, despite your belief that the majority of the investors should/are valuing the stock at >$70, it is trading at ~$45, which should at least provide some evidence that the majority of shareholders--today, not last year--value it at <$55; to me the next question is "exactly who is voting on this: the shareholders or the board members?", but even either way it doesn't seem insane to me that getting a guaranteed 10% increase in your purchase isn't in the best interest of the majority of the shareholders.

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

#643
This thread is hilarious.

In the cesspit of a social media website, people accuse Twitter of being a social media cesspit.

I've seen people arguing for absolute freedom of speech, except in malicious circumstances, but seem to think that malicious is easy to define.

I've seen people ask if there really are any other alternatives to individuals owning huge wealth. Or people saying that doing immoral things is ok if it's within the law.

I think I've had enough of this site for a while.

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

#645
"Boards have a fiduciary duty to the shareholders."

Xi and the CCP/Chinese Government make a bid to buy Google, for a 20% premium.

They also bid to buy Twitter, Facebook and Microsoft. All for 20% premium.

Should shareholders do 'the right thing' and sell?

Assuming you're not a Twitter shareholder why do you care about investors interests? Why don't you care about your interests?

Why do plebes constantly argue against their own interests?

As a Twitter user, I pretty much don't want Elon Musk involved, and I don't really care too much otherwise.

Every organization has stakeholders: customers, suppliers, financiers (investors and debtors), execs, employees.

If a Union forms, they can take considerable control away from investors.

If debtors come calling, they can take considerable control, away from investors.

'Externalizations' such as issues in the public good, or environmental issues - matter.

Usually, we like to think of those things, in the context of a 'Charter' that highlights those things i.e. some 'Crown/Gov. Corporations', things like the CBC, US Post etc..

When you say 'things that don't matter vs. things that do' - that could be true, or only even true from a certain perspective.

For example, you might think they should not focus on moderation, but instead, advertising. Well, without appropriate moderation, the ship could sink. Also, issues like moderation can be hard and ultimately satisfy nobody, and frankly, might not even be an operational distraction (although it probably is).

Finally - as property of Elon Musk - Twitter will be literally whatever he wants it to be.

Rich People have, throughout history, bought newspapers etc. for the entire purpose of slandering their opponents. The news wasn't even 'real' until just a few generations ago, it was all tabloid.

Elon Musk could will likely censor those who disagree with him and his colleagues, and boost/amplify those who's interests are aligned with him - maybe not as badly as others, but it could be that.

If you're going to take a 'principled stand' on this issue, it's going to have to be one probably of the externalized common good, not so much shareholders.

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

#646

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…

I don't get how the logistics work in a move like this. If you're a shareholder and the board approves the sale are you forced to sell your shares to Elon at the stated price? What if you don't want to sell?

Edit: I also wonder how leveraged positions, especially shorts, get resolved.

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

#647

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…

> too low to be acceptable for major investors I think Vanguard and BlackRock would happily take that premium. Cathie Wood wouldn't.

Vanguard and Blackrock always votes with management and sadly lot of times with bad management. This is the hidden cost of passive investment. They don't do anything.

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

#648
post #577

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?

Jack wasn't fired.

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

#649
post #577

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?

Jack never struck me as very competent like many of the other tech founders. More like somebody at the right place and time

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

#650

Can someone give me a layman's explanation as to why taking Twitter private would allow Elon to make the changes he wants to make that he couldn't do if it was still public?

If he takes the company private (solo or with other investors), he'll make sure to have the votes to impose the CEO of his choice, with the option to change him/her whenever he pleases. That should be a sine qua non.
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