Elon Musk's $43B hostile takeover of Twitter

Artashes

Administrator
Staff member

John @ S4

Active member
I can't see this happening, I just don't think the board and shareholders will go for it, and it's questionable whether Musk even sees it as a serious offer himself or a publicity stunt.

Note: Fully prepared and semi-ready to eat my words just in case.
 

bigredseo

HD Community Advisor
Staff member
He did offer 2 times the value of shares, so from a financial standpoint, if the board was looking out for shareholders, it's a smart decision to sell. They're not going to see 2x growth in any near future without major change, which Twitter can't do.

Now the SEC may have something different to say about it, but I can't see a reason why the SEC could block the sale. He's not monopolizing a market etc.
Twitter's Revenue was $5.077 billion in 2021, and a profit of -$221.410 million.
The company has a valuation at $13.316 billion (Feb 2022)

For Twitter to make a profit, they need a change in leadership/board to bring in potential for new changes to the platform.
 

Artashes

Administrator
Staff member
if the board was looking out for shareholders, it's a smart decision to sell.
If the board is more worried about staying in control of content, then it's a completely different case. I think whoever's interests Twitter is serving, as a platform, is a little worried about loosing their ability to censor.
 

bigredseo

HD Community Advisor
Staff member
The big question is if the government would step in on a private sale just because it's Musk. There's no legal reason to stop the sale to a private citizen.. UNLESS they somehow make it that Twitter is critical to society and potentially a utility or public service.

Still, not sure about a legal block.

I saw a headline today about a "poison pill" option which basically dilutes the company shares if anyone takes over 15% share. Not quite a suicide pact but something similar I guess
 

Artashes

Administrator
Staff member
Considering Twitter is unprofitable and the fact that the answer (to a sensible premium offer) didn't come quick enough, makes me wonder if they are desperately looking for ways not to accept the deal.
 
I can't see this happening, I just don't think the board and shareholders will go for it, and it's questionable whether Musk even sees it as a serious offer himself or a publicity stunt.

Note: Fully prepared and semi-ready to eat my words just in case.
Well... as of yesterday, the board is reviewing the offer.
Also, what do you think will be the pros and cons of this takeover actually happening?
 

SenseiSteve

HD Moderator
Staff member
Actually, the board did accept his latest offer of $44 Billion and shares of Twitter immediately went up to $51. Lots of liberals are melting down today.
 

John @ S4

Active member
I can't see this happening, I just don't think the board and shareholders will go for it, and it's questionable whether Musk even sees it as a serious offer himself or a publicity stunt.

Note: Fully prepared and semi-ready to eat my words just in case.

Just saying... :D
 
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