Elon Musk Moves to Buy Twitter
Twitter Inc.’s largest single shareholder Elon Musk has offered to acquire the micro-blogging network company after acquiring 9.2% of the company’s outstanding shares.
Musk has announced to take the company private with $43 billion cash as cash consideration offer to twitter’s shareholders in a move to take the company private. However, Twitter has adopted a limited-duration shareholder rights plan to protect itself from billionaire entrepreneur
Musk made the bid on Wednesday in a letter to the board of Twitter- the micro-blogging platform that has become a global means of communication for individuals and world leaders – and it was made public in a regulatory filing on Thursday.
Recall that after his TED talk on Thursday, Musk hinted at the possibility of a hostile bid in which he would bypass Twitter’s board and put the offer directly to its shareholders, tweeting: “It would be utterly indefensible not to put this offer to a shareholder vote.”
Under the plan, the rights will become exercisable if anyone acquires ownership of 15% or more of Twitter’s outstanding common stock in a transaction not approved by the Board. The rights plan will expire on April 14, 2023, Twitter said.
George Farmer, CEO of Parler in a commentary said the bid is unlikely to succeed.
“Twitter’s average price during 2021 was higher than Musk’s bid now, which in honesty, is a low number.
“For the majority of 2021, Twitter’s stock traded over $60 a share and crossed $80 about a year ago – the result? Most shareholders will believe that this bid significantly undervalues the company and Elon is unlikely to win the fight.
“To back up this point, the stock has not rallied to the bid price this morning, it is still trading at $47 a share, which means that the financial markets are expecting this to fail and then Elon to dump his position, meaning the stock price will go down after this has concluded”. #Elon Musk Moves to Buy Twitter
