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

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

#471

Post by maxlybbert »

Waterluvian wrote: post #463
toephu2 wrote: post #457

Wow, my prediction is Musk will walk away, Twitter stock price will tank, and Twitter will be flooded with thousands of shareholder lawsuits (for breaching their fiduciary duty).

Why will the price tank? None of this changes the value of Twitter if he walks away.

I also believe that Musk will walk away and the stock will tank.

Musk’s recent stock purchase and discussion about joining the board made the price jump significantly. You’re right that there’s no obvious reason that his involvement should change Twitter’s value, but the market appears to think otherwise. If he walks away, at a minimum, I would expect that the stock price will drop to what it was before he started playing around.

But if he walks away, I believe he’ll also do something to make the stock drop more. For instance, he’ll stop Tweeting, which should have a measurable impact on the number of people actually using Twitter regularly.

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

#472

Post by Waterluvian »

maxlybbert wrote: post #471
Waterluvian wrote: post #463

Earlier quoted context omitted.

Why will the price tank? None of this changes the value of Twitter if he walks away.

I also believe that Musk will walk away and the stock will tank. Musk’s recent stock purchase and discussion about joining the board made the price jump significantly. You’re right that there’s no obvious reason that his involvement should change Twitter’s value, but the market appears to think otherwise. If he walks away, at a minimum, I would expect that the stock price will drop to what it was before he started pl…

Thanks. That makes sense and I see it now.

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

#474

Post by Waterluvian »

daenz wrote: post #466
Waterluvian wrote: post #463

Earlier quoted context omitted.

Why will the price tank? None of this changes the value of Twitter if he walks away.

$TWTR has been trending down over the last year. When he bought, the price went up 27%, signaling that people thought his involvement would be positive for the company. If he says "twitter is hopeless" and pulls out, the sentiment will be that nothing can save twitter.

Yup that tracks. Thanks!

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

#475

Post by joppy »

the_svd_doctor wrote: post #337
codedokode wrote: post #333

I don't really understand how this "poison pill" is legal. Imagine that you own a stock that can be sold at free market at $10/share. Then the board decides that whoever buys those shares will have to resell them to board members at $1. This means that now the price of those shares drops to $1 and you have lost $9 per share. How this can be legal?

Same. If I own 10% of a company, how can the board just decide through some mechanism that I now really own like 8% ?

Companies do this all the time with share-based compensation don’t they?

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

#476

Post by oceanplexian »

Waterluvian wrote: post #463
toephu2 wrote: post #457

Wow, my prediction is Musk will walk away, Twitter stock price will tank, and Twitter will be flooded with thousands of shareholder lawsuits (for breaching their fiduciary duty).

Why will the price tank? None of this changes the value of Twitter if he walks away.

It will lower the value to institutional investors that they pulled the “poison pill” move, because it means that management is entrenched and they can’t remove the board if they needed to. Elon isn’t the only one who is barred from buying a controlling stake in the company.

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

#477

Post by VirusNewbie »

tayo42 wrote: post #459
systemvoltage wrote: post #373

Earlier quoted context omitted.

One can equally argue that opens sourcing Twitter algorithm and building trust would bring incalculable number of new users, have a profound impact on their ad business and not to mention, cut down their competitor's moat. People will flock to Twitter like bees. Ad revenue + subscription would skyrocket. So, it can go either way and can be argued either way.

> opens sourcing Twitter algorithm People need to stop saying this. It's nonsense. Or maybe keep saying it so we know your clueless about how anything works that your commenting on

You think there is no such thing as OSS models?

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

#478

Post by thaumasiotes »

woodruffw wrote: post #291
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…

If I was a member of Twitter's board, Musk's history of erratic public behavior, SEC settlement, and openly hostile attitude towards the company's employees would be more than sufficient to justify my belief that his controlling ownership would not be in the interest of the current average shareholder. That opinion would also be consistent with how "fiduciary duty" is interpreted by US regulators: companies are not r…

> If I was a member of Twitter's board, Musk's history of erratic public behavior, SEC settlement, and openly hostile attitude towards the company's employees would be more than sufficient to justify my belief that his controlling ownership would not be in the interest of the current average shareholder.

That... makes absolutely no sense. The interest of the current average shareholder ends when they sell their stock. There is no point in time at which both (1) the current average shareholder owns more than zero shares, and (2) Musk has a controlling interest. So it's impossible for those two things to conflict.

If you were a member of Twitters board, would it be in the interest of the current average shareholder to sell their shares at well above the market price?

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

#479

Post by Tostino »

Waterluvian wrote: post #474
daenz wrote: post #466

Earlier quoted context omitted.

$TWTR has been trending down over the last year. When he bought, the price went up 27%, signaling that people thought his involvement would be positive for the company. If he says "twitter is hopeless" and pulls out, the sentiment will be that nothing can save twitter.

Yup that tracks. Thanks!

Which is just fucking rank market manipulation

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

#480

Post by alfor »

Waterluvian wrote: post #463
toephu2 wrote: post #457

Wow, my prediction is Musk will walk away, Twitter stock price will tank, and Twitter will be flooded with thousands of shareholder lawsuits (for breaching their fiduciary duty).

Why will the price tank? None of this changes the value of Twitter if he walks away.

He will sell his 9%

He will start something to compete against Twitter.

Twitter will be stuck with their current management and cultural problems.

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