The world’s richest man, Elon Musk, who launched an offer to buy Twitter on Wednesday, responded to his own tweet, which is more than four years old, in which he shared his passion for the social media platform.
“I love Twitter,” Musk tweeted in December 2017.
“How much is it?” He replied minutes later.
The tweet, almost certainly forgotten by all but Musk, received a follow-up response from the billionaire on Friday night with a down-smiling emoji.
Elon Musk tweeted in December 2017 about his love of Twitter
Musk returned to the tweets in the early hours of Saturday morning with an emoji smile down.
Even if Musk may have been annoyed by the prospect of buying a social media platform at the time, Musk is now putting his money where his mouth is with a $ 43 billion bid for the company.
The offer itself, which Musk said was final, valued Twitter at $ 54.20 per share – above the closing price before his offer, but below the $ 77.06 peak reached in February last year.
On Thursday, CEO Parag Agraval told officials they were still considering Musk’s proposal.
But on Friday, the Twitter board announced a dramatic “poison pill plan” to prevent Musk from further increasing his stake in the company.
The board said it would not be quiet, saying that any acquisition of more than 15 percent of the company’s shares without its approval would trigger a plan to flood the stock market, making buying much more difficult.
There were some interesting responses to Musk’s tweet with some from 2017, and others were posted just hours ago
Even with a moderate and inflexible proposal that could help the board argue for rejection, this is a difficult moment that could end in lawsuits by almost everyone involved.
In order to repel Musk’s offer, the Twitter board will have to be on a solid footing, arguing that the company costs more, said Wharton School of Finance professor Kevin Kaiser.
Shareholders who believe the board is rejecting a winning deal will be able to file lawsuits against Twitter.
Musk has the option to bypass the board and try to buy shares directly from market shareholders, but this could lead to tedious negotiations with some shareholders who want more money.
“Twitter’s board of directors has limited options under Delaware’s law to suspend a tender made directly to shareholders, which Elon Musk did not make, but which he could do if he chose,” said Wharton School of Finance professor Kevin Kaiser.
“If he does that, and if shareholders choose to offer their shares, then he can succeed without the need for support or approval from the board.”
In response, Musk is now said to be recruiting others to join his candidacy, the New York Post reported Friday night.
Musk told a TED conference, pictured above, that he had “enough money” to make the deal, but financial analysts described the situation as more complicated.
Twitter’s stock price remains below the level of Musk’s offer of $ 54.20, which suggests that the market is not sure whether his offer will be accepted by the board
While the net worth of the serial entrepreneur is estimated at $ 265 billion by Forbes, his fortune is not in a bank account and is waiting to be spent.
Musk told a TED conference that he had “enough money” to complete the deal, but financial analysts described the situation as more complicated.
Much of Musk’s wealth comes from shares in electric car maker Tesla, which he manages.
Musk will have to turn part of Tesla’s ownership into money, either by selling shares or by borrowing shares as collateral.
“The specifics of the way Musk will finance the deal will determine the consequences for Twitter,” Moody’s said in a note to investors.
Moody’s estimates that it will cost Musk $ 39 billion to buy all of Twitter’s outstanding stock, and that there will be a “high chance” he will have to repay or refinance billions of dollars in existing debt to the San Francisco-based company.
This was before the movement of the poison pills on Twitter, which increased the cost of Musk.
Musk wrote a poll on Twitter that suggested he might consider making an offer directly to shareholders.
He asked whether the company’s private claim for the price offered should depend on the shareholders and not on the board.
As the poll drew to a close on Friday, more than 2.7 million votes were cast, with nearly 84 per cent in favor.
Selling a huge amount of shares in Tesla to buy Twitter will come with a large tax bill based on capital gains and could lead to the sinking of shares in the electric car company as the market is flooded with shares for sale.
Musk can keep his shares and get a loan by taking interest payments. Or he may team up with a partner with deep pockets, but this may come with a strong-willed executive to be accountable for his decisions on Twitter.
On Thursday, Musk tweeted that if the Twitter board rejected his offer, they would do their shareholders a “titanic” disservice.
Musk said that if the Twitter board rejected his offer, they would be doing a “titanic” disservice to their shareholders.
He says he wants to own the platform, “not to make money”, but rather to strengthen freedom of speech.
“It’s not about economics,” Musk said at a TED conference in Vancouver on Thursday.
“My strong intuitive feeling is that I have a public platform that is highly trusted and widely inclusive, important for the future of civilization.
“Twitter has become something of a de facto town square, so it’s really important that people have both the reality and the perception that they can speak freely, within the law.”
He added that he was not sure he would be able to achieve it – but said he had a plan B if the board rejected his proposal. He declined to say what could lead to this.
Elon Musk responded with laughing emojis to a version of the classic “Distracted Boyfriend” meme mocking the Twitter board
Musk himself seems to be enjoying the drama.
On Friday, he mocked Twitter’s board of directors for trying to block it from a $ 43 billion hostile takeover.
A Twitter user tweeted a version of the classic “Distracted Boyfriend” meme, mocking the Twitter board.
The image depicts the “Twitter board” longing for the option “to continue this easy concert that gives me shares”, while “Twitter investors” look with disgust because they are “happy with $ 54.20 per share” – the amount of Musk’s unsolicited offer.
Musk responded to a meme with laughing emojis.
Musk also responded to the poll on another account, showing that a majority of respondents supported his plan to make Twitter private by writing, “Thank you for your support!”
Despite Twitter’s latest move, Musk can still oppose the board and take the company into battle through a proxy by voting for current directors – although this strategy could take years to play out.
Earlier, Musk responded to reports that the board was considering a “poison pill” plan, tweeting: “If the current Twitter board takes action against the interests of shareholders, it will violate its fiduciary duty.”
“The responsibility they would take in this way would be titanic in scale,” he added, apparently referring to potential lawsuits by shareholders.
The Twitter board is led by Chairman Brett Taylor, who is also co-CEO of business software giant Salesforce.
Twitter CEO Parag Agraval (left) and co-founder Jack Dorsey (right) also have seats on the board.
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