Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Twitter board adopts poison pill after Musk’s $43B bid to buy company

cnbc.com

Post reply on HN
Print view View original

61–70 of 1001 posts

Re: Twitter board adopts poison pill after Musk’s $43B bid to buy company

#61

Post by SkyMarshal »

nickysielicki wrote: post #29

I don’t understand how any board can implement a “poison pill”, not just Twitter but Netflix and others, and not be found working against the interest of shareholders. Can anyone help me understand? You’re categorically changing the profile of the stock. This has a chilling effect on large investors, including but not limited just to Musk, right? Vanguard, for example, has just had its range of further investment lim…

> and not be found working against the interest of shareholders.

It depends on what the interests of the shareholders actually is. Monetary only, or are there other considerations they care about?

I assume the boards of such companies have had private discussions with the majority shareholders to find out exactly what their priorities are, and then acted accordingly.

Re: Twitter board adopts poison pill after Musk’s $43B bid to buy company

#63

Post by yieldgap »

teeray wrote: post #56
grapehut wrote: post #46

Earlier quoted context omitted.

Have multiple entities buy shares

I wonder if these could be Tesla, The Boring Company, and SpaceX?

The poison pill will apply to "groups" as well, so don't think that would work

Re: Twitter board adopts poison pill after Musk’s $43B bid to buy company

#65

Post by tsimionescu »

nickysielicki wrote: post #16
s17n wrote: post #12

Earlier quoted context omitted.

That's how the game is played. If you want to take over a company without the consent of its executives, it's going to be a fight and you're probably going to lose.

The board of a public company cannot reasonably claim that they’re worth twice(!) what the market currently values their company at simply because they feel it’s true. Unless they have advertising contracts and growth metrics in the pipeline that represent a reasonable doubling of revenue and value, they’re acting legally irresponsibly. Justifying this is difficult. This is objectively a good offer.

Apparently it's lower than the current 52 week moving average of the stock price, so I don't think it would be outrageous to claim it's a low offer even without some massive deals in the pipeline.

Re: Twitter board adopts poison pill after Musk’s $43B bid to buy company

#66

Post by fairity »

People are overlooking the fact that a poison pill will likely increase the price of Musk's final offer, and in doing so will maximize shareholder value.

Put another way, Musk may be willing to pay a lot more than a 25% premium for Twitter (he already said he doesn't care about price). Without this poison pill, Musk can force a takeover by accumulating shares. With this poison pill, the board has leverage to maximize his final offer.

Re: Twitter board adopts poison pill after Musk’s $43B bid to buy company

#67

Post by philistine »

nickysielicki wrote: post #41
themitigating wrote: post #37

Earlier quoted context omitted.

You're claiming that Musk's purchase of twitter is objectively good for shareholders

Given that it’s at a share price premium for 90%+ of the lifetime of the stock since IPO, yes. Most shares were bought below the price Musk is asking.

The board has declared the price offered to be too low. You say it's high enough, but I doubt you own as much stock as the people on the board.

Re: Twitter board adopts poison pill after Musk’s $43B bid to buy company

#68

Post by jayd16 »

nickysielicki wrote: post #41
themitigating wrote: post #37

Earlier quoted context omitted.

You're claiming that Musk's purchase of twitter is objectively good for shareholders

Given that it’s at a share price premium for 90%+ of the lifetime of the stock since IPO, yes. Most shares were bought below the price Musk is asking.

If you think the stock could grow further without Musk then the board would be protecting your interests.

Re: Twitter board adopts poison pill after Musk’s $43B bid to buy company

#69

Post by ryoshu »

nickysielicki wrote: post #41
themitigating wrote: post #37

Earlier quoted context omitted.

You're claiming that Musk's purchase of twitter is objectively good for shareholders

Given that it’s at a share price premium for 90%+ of the lifetime of the stock since IPO, yes. Most shares were bought below the price Musk is asking.

If North Korea offered $60 billion to buy Twitter would Twitter be forced to sell? Not comparing Musk to NK, but money isn't the only consideration when an offer to sell comes in.
Post reply on HN