Elon Musk was dismayed after the Twitter board adopted a poison pill plan against him to thwart his efforts to take the company private, although he has now taken a new step that stunned Twitter that Elon What is their talent and will it help them?
Elon Musk is one of the smartest people of our time, which he has realized in achievements. In the world of auto and space, he is a genius who knows how to make his moves. Musk’s great contributions to the engineering auto industry and rocket technology have been recognized by the Royal Society of London.
He has been hailed as one of the most prestigious awards in the world.
With such an award, Alon, a fellow of the royal society, is now on an equal footing with other famous scientists such as Isaac Newton, who in 1672 was awarded Albert Einstein, who became one.
Fellow of the Royal Society in 1921 and award-winner Stephen Hawking in 1974 As the Twitter battle gathers pace Elon makes a move that has stunned the Twitter board, smart engineer bought by the world’s richest man Having taken a smart step.
On April 4, he was invited to the board of the American micro-blogging site by CEO Perag Agarwal in a tweet with a 9.2 percent stake in Twitter that read, “I’m excited to share that we’ve got Elon Musk on our board through talks.” are being appointed.
Elon It became clear to us in recent weeks that he would bring great value to our board but it was the same Twitter CEO who informed the world a few days later that Elon had declined the offer, Perague tweeted that Elon has decided not to join our board.
I have sent a short note to the company sharing with all of you here that when you are alone you do not accept any good offer that comes your way sometimes you have to reject today’s good offers. Has to be bright enough because you better see the resolution.
In the economics of tomorrow known as delayed gratification, the way Elon Musk is a 1997 economics degree graduate from the University of Pennsylvania, so you can expect him to make the best investment decisions, in terms of Twitter, for most people. thought that Elon had just declined the offer.
He was very busy with his other companies like SpaceX Neurolink and Tesla and The Boring Company, but that was far from the truth. Musk had other plans that also took the Twitter board by surprise on April 14. Musk surprised the world when he offered to buy 100 stocks on Twitter at 54.20 per share.
Which is equivalent to $43 billion, Elon’s proposal was quickly rejected by Saudi Prince Talal, who is the chairman of the Kingdom Holding Company, which holds a 5.2 percent stake. The Twitter board held an urgent meeting the day after Elon Musk’s offer, with the sole agenda of finding a way to stop the Tesla CEO as a host.
At the end of the meeting, the takeover board adopted a limited-term shareholder rights plan often referred to as the poison pill against Musk, a method aimed at helping Twitter take over after the tech billionaire’s poison pill plan was implemented. The plan to take it private was to be foiled.
The CEO had several options, the easiest being that he could simply skip the takeover exercise and continue his 9.2 stake in the company, second he could add 3:27 more money as the world’s richest man and could carry out the proposal which was comfortable to the Board.
He may eventually sell his 9.2 stake in Twitter and invest the money elsewhere but Musk has ignored all these options and instead made a move that shocked Twitter after being rejected by the board Elon Musk has decided to take up the matter.
The true owners of the social media platform who are the shareholders, Elon’s move is known as Tender Offer 3:52 which makes a direct appeal to the shareholders to sell or tender their shares. Typical price It is used in friendly deals, but its true value is to hostile bidders when the target company’s board is not engaged.
Which perfectly sums up the Twitter board’s position that this is not a new move, stunned the board, but put them in a difficult position, it would be an embarrassment for the board. , because they have more followers.
The tech icon has more than 83 million followers on Twitter compared to Twitter itself, while Twitter has only 61.5 million followers, Elon is also expected to outshine the board as its share in the social media site is higher than that of all 11 board members. more, in which United Musk holds a 9.2 percent stake.
While the 11 board members hold only 2.37 of the 2.37 stake in the company, 2.25 belongs to Twitter co-founder Jack Dorsey, this simply means that the other board members, saved for Jack, own 0.12 percent of Elon’s combined. The stakes are, the even bigger advantage is that Jack Dorsey is backing him to fight the board.
In that case, shareholders are likely to favor Jack and Elon. Shareholders have great faith in Dorsey as the founder of T. They will support Musk because he is the richest man on the planet, the least they can be sure of. that their financial concerns will be met.
Elon’s tender offer is the right plan when he’s on the same ship with the richest man on earth. Elon’s withdrawal from Twitter as an investor will also go beyond the poison pill method on board, also another strategy that Twitter will eventually sue shareholders on board
As the Tesla billionaire left the company, it would be a stark contrast to the time when Musk bought his 9.2 percent stake in Twitter, when the giant communications platform’s share prices rose 27 percent, with Elon initially earning 54.20 percent. The stock was offered when he wanted the company privately on April 14, seven days later he raised the share price to 58.60.
Musk’s offer is higher than the current Twitter share price of 48.93, so when Elon pulls out his investment from Twitter, the share price could drop below $40, a huge loss for shareholders that will send the Twitter board to the board. Will be held accountable as shareholders are expected to sue board members for failing to sell the company.
This business was attracting the best price in the board world. Members of a company are expected to act in the best interest of shareholders, which is called their supporting role via his Twitter page, Elon told the board. Also warned of dire consequences as they have written in Elon’s tweet that they will be in breach of their duty if the current Twitter board takes action contrary to shareholder interest.
The responsibility they assume will be Titanic, and Scale Musk’s move to go the tender offer route will certainly move the day forward. He is backed by his friend and Twitter co-founder Jack Dorsey, with Jack’s rich experience in Twitter. He will help Elon mobilize shareholders on Elon so that they can accept his offer.
It will be a great shame for the board which has tried to block the takeover by all means, Kasturi is super rich and would be willing to add some money to his initial offer. Shareholders’ Profit They have so far secured approximately $25.5 billion in debt financing through Morgan Stanley’s senior funding and other firms.
He’s also pledged about $21 billion in equity financing, the CEO of Tesla being a man known for winning all fights. In gets in, he makes his moves smarter more often than not, lest his moves surprise his rivals which gives him an advantage over them. The case of the Twitter takeover is no different.
Elon Musk has made a smart move to buy Twitter stock directly from shareholders through a scheme known as a tender offer, Elon’s planned and wise move has caught Twitter.