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

cnbc.com

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

#481

Post by thaumasiotes »

rosndo wrote: post #424
roughly wrote: post #400

Earlier quoted context omitted.

> An ETF isn’t going to “accidentally” exceed 15% ownership of Twitter. No, but an ETF has a defined investment strategy, and if enough money comes into the ETF, it could potentially trigger this.

Do you think big ETFs just buy shares willy nilly without any due diligence on company charters and bylaws?

Index funds do, that's pretty much the definition of an index fund.

ETFs are a different concept, but a good index fund will be structured as an ETF, and it looks like this thread is using "ETF" to mean "index fund"? If so, then the answer to your question is an unambiguous yes.

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

#482

Post by gnicholas »

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…

> For instance, he’ll stop Tweeting, which should have a measurable impact on the number of people actually using Twitter regularly.

There are that many people whose engagement depends entirely upon whether Elon Musk is actively tweeting? I don't use Twitter much, but that seems pretty amazing if true.

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

#483

Post by [deleted] »

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…

[deleted]

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

#484

Post by oceanplexian »

tyre wrote: post #139
_3u10 wrote: post #117

Earlier quoted context omitted.

Yeah I made 10% getting in after the disclosure was made. I’d actually invest in a twitter owned by Elon and likely ditch all my other profiles too. A platform that makes money and has free speech would be wonderful. Maybe he can steal Rogan from Spotify too.

What’s a concrete example of speech that you’d make which is specifically banned on Twitter?

COVID was the biggest one for me.

How many people were banned or blocked by Twitter for COVID misinformation, when it turned out that those spreading “misinformation” were actually the CDC, WHO, and government institutions, and when said institutions blatantly lied to the public about masking, vaccines, lab leak theory, and lockdowns, Twitter did absolutely nothing, except punish the people who criticized said institutions.

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

#485

Post by hooande »

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).

As is detailed by many smart people below, fiduciary duty lawsuits are difficult to win. They'd pretty much have to have board members emailing each other saying "This would be in the best interest of shareholders, but let's screw them over instead"

This was an epic debacle. Musk invested 4 BILLION dollars in an asset of questionable value, because "free speech". If he times it right he could come out ahead financially. But in general this was a pointless distraction and public fiasco that served no one.

I have no idea what he was doing or what his goals were. It looks like he was upset that people he liked were getting banned by twitter and was afraid that he'd run afoul of their rules himself, so he tried to buy the company. And despite being one of the richest humans to ever live, he failed at that.

This is just a head scratcher and a massive L. I don't see another way to view it.

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

#487

Post by trixie_ »

Tostino wrote: post #479
Waterluvian wrote: post #474

Earlier quoted context omitted.

Yup that tracks. Thanks!

Which is just fucking rank market manipulation

If he honestly wants to buy it which given the hoops he's jumping through seems to be the case then it's not 'manipulation' at all. Every move Elon makes is going to change the price. I think we all know he's not 'in it for the money' so it'd be pretty hard to make the case for manipulation. He really wants it. And if everyone else thinks Twitter would be better off with Elon as owner the stock goes up. And if he gives up trying, the stock goes down. That's not manipulation, that's sentiment.

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

#488

Post by tmaly »

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).

The board could always remove the poison pill once shareholder lawsuits start. Musk could always step back in and buy at a significant discount

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

#489

Post by stupandaus »

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.

this is incorrect. the price going up is a reflection of the market's believe about the % likelihood of a deal.

for example at market close of $45.08, the market is betting there is a $45.08/$54.20 = 83% chance that this transaction goes through.

there are certainly individual stockholders who are buying because they like his involvement, but that is tiny compared to people buying and selling a very near-term bet

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

#490

Post by tehwebguy »

alfor wrote: post #480
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.

He will sell his 9% He will start something to compete against Twitter. Twitter will be stuck with their current management and cultural problems.

Nobody will switch from Twitter to some knock off he or anyone else makes.

(By “nobody” I mean both nearly 0% of users and only people who will not be missed on Twitter)

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