41–50 of 303 posts
The poison pill says elon cant buy more but current shareholders can buy more at a discount relative to the stock market. Basically Elon was just going to shell out slightly more money or fail and everyone who didn't buy is screwed. It however takes shareholders to want to buy more. Twitter is quite undefended. Poison pill was never going to be effective in any major way. At most they were going to delay the inevitab…
My read on it is that the shareholders didn’t want Musk controlling the company (owning 51%) and dragging them along with him. Being the absurdly rich person he is, he’d likely not care too much about how service changes would affect the stock price. However they are quite happy to let Musk buy all of them out (owning 100%) at a reasonable price then let him do whatever marketshare-tanking moves he wishes. They don’t…
Elon's next move was a tender offer which put the issue in front of shareholders for an up/down vote on a full buyout, which would sidestep any board poison pil.
>> What caused the board to change the direction 180 and now closing the deal with Musk? He secured financing for the deal.
They also probably wanted to buy time for a counter-offer to show up at a higher price.
My read on it is that the shareholders didn’t want Musk controlling the company (owning 51%) and dragging them along with him. Being the absurdly rich person he is, he’d likely not care too much about how service changes would affect the stock price. However they are quite happy to let Musk buy all of them out (owning 100%) at a reasonable price then let him do whatever marketshare-tanking moves he wishes. They don’t…
Don't they teach this stuff anymore? I had to learn this in college, many years ago.
Of course, it was a little less likely for eccentric billionaires to just "shop" in the market like this for ultra-large corporations. Still. We at least knew how the processes worked.
The idea of the ”poison pill” is to make it possible for board members to strenghten their ownership by issuing new shares to existing owners with a discount in the event that one single outside entity buys a significant portion of the shares. It is artificial dilution, which in practice makes it possible for the board to cause heavy short-term losses to anyone attempting a hostile takeover: the market reaction to di…
> make it possible for board members to strengthen their ownership by issuing new shares to existing owners This poison pill does not strengthen Twitter board members' ownership because they don't own much Twitter stock.
The poison pill says elon cant buy more but current shareholders can buy more at a discount relative to the stock market. Basically Elon was just going to shell out slightly more money or fail and everyone who didn't buy is screwed. It however takes shareholders to want to buy more. Twitter is quite undefended. Poison pill was never going to be effective in any major way. At most they were going to delay the inevitab…
Wait, did I miss something on this? Last I had seen he still owned the stock but rejected Musk's offer.
For a startup-oriented discussion place, it's shocking how little users know about how mergers/acquisitions/takeovers actually occur in the market. Don't they teach this stuff anymore? I had to learn this in college, many years ago. Of course, it was a little less likely for eccentric billionaires to just "shop" in the market like this for ultra-large corporations. Still. We at least knew how the processes worked.
Maybe you can share your knowledge, so those of us who are not dealing with mergers/acquisitions/takeovers can learn something?
For a startup-oriented discussion place, it's shocking how little users know about how mergers/acquisitions/takeovers actually occur in the market. Don't they teach this stuff anymore? I had to learn this in college, many years ago. Of course, it was a little less likely for eccentric billionaires to just "shop" in the market like this for ultra-large corporations. Still. We at least knew how the processes worked.
In my decade on HN I've seen a lot about funding, IPOs, and acquisitions of private companies, but very little about hostile takeover of public companies.
Where are you expecting people to have developed an incidental background knowledge on deploying / overcoming poison pills?
For a startup-oriented discussion place, it's shocking how little users know about how mergers/acquisitions/takeovers actually occur in the market. Don't they teach this stuff anymore? I had to learn this in college, many years ago. Of course, it was a little less likely for eccentric billionaires to just "shop" in the market like this for ultra-large corporations. Still. We at least knew how the processes worked.