Elon Musk offers to buy Twitter for more than $40bn

Thursday, April 14, 2022
author picture Liam Lambert
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Original content created by news.limited staff

Elon Musk Offers to Buy Twitter For More Than $40bn

On April 4‚ Elon Musk announced that he was purchasing a 9% stake in Twitter‚ making him the largest shareholder in the company. Twitter's share price rose 27% on the news. Musk also offered to join Twitter's board. He later declined. However‚ he did tweet a list of improvements he would like to see to the company. If Twitter rejects his offer‚ we might see a rethink of Musk's acquisition plans.

Elon Musk's bid to buy Twitter

If Musk's bid is successful‚ it will likely be a success for the company‚ Wedbush Securities analyst Dan Ives believes. Twitter's board will likely have to accept the offer‚ but might also seek other bids. Among the major shareholders are BlackRock‚ Morgan Stanley‚ State Street Global Advisors‚ Vanguard Group‚ and others. Musk has 80.5 million followers on Twitter‚ which is more than Kim Kardashian. The deal is highly unlikely to go through‚ however. The Tesla CEO had been active on Twitter for 10 days‚ has been a vocal critic‚ and has self-identified as a free-speech absolutist. Musk‚ who also owns about 10% of Twitter‚ has said the company needs to be transformed as a private company. Musk has also publicly expressed his desire to become Twitter's CEO. The price tag for Musk's bid is staggering. Tesla is worth $990 billion‚ while SpaceX is valued at $100billion. Even though SpaceX is not publicly traded‚ Musk has made headlines with his first mission to the International Space Station‚ taking an all-civilian crew into orbit. The mission was hailed as a breakthrough in commercial spaceflight. Twitter's leadership may question Musk's ability to complete the deal‚ and some analysts argue that it's merely a distraction from Tesla's challenges. Regardless of the price tag‚ Twitter's de facto town square has become a major political forum. If Musk succeeds in acquiring Twitter‚ it will be the largest acquisition in the history of the company. However‚ it is unclear whether the proposed purchase of Twitter will lead to free speech in the site. However‚ there are some other questions that remain. The company has been criticized for a number of reasons‚ including a lack of diversity in its board. Aside from Musk's recent tweets‚ the news of Musk's bid for Twitter has drawn a firestorm on Twitter. Some users compared Musk's takeover attempt to the HBO series Succession‚ which follows conflicts at a giant media firm. Musk himself has criticized Twitter in the past. But this time‚ it's not clear whether he'll join the board or not. In addition to a lawsuit from the Securities and Exchange Commission‚ Musk has repeatedly tweeted about regulatory issues. Despite the lawsuit‚ Musk has been accused of reckless behavior on the social media platform. The tweets have driven Tesla's stock price skyrocketing. In response‚ Musk hinted at a change in Twitter's policies and has argued for wider access to verified accounts. A verified account is marked with a blue check mark and holds prominence in the news.

Elon Musk's plan B if the board rejects his offer

If the Twitter board declines Musk's takeover offer‚ what would be his plan B? Musk's stake in Twitter is four times that of founder Jack Dorsey's‚ making him the company's single largest shareholder. He publicly revealed his bid on Thursday morning‚ but did not elaborate on what his plan B is in the event that his offer is turned down. He told the TED conference that he has a 'Plan B'. Tesla chief Elon Musk has a plan B in the event that Twitter's board rejects his hostile takeover offer. Twitter will hold an emergency all-hands meeting today at 2pm local time to discuss Musk's hostile bid for the entire company. While Musk has tweeted about wanting to keep as many Twitter shareholders in a privatized Twitter‚ the company's board and CEO may be leery. Considering his net worth of $264.9 billion‚ Musk could always sell his stake and borrow money from investors. However‚ this wouldn't be the most financially sound option for him. But that doesn't mean he can't do it. After all‚ he did say he has enough assets to fund the deal. But after delivering a TED talk on Thursday night‚ Musk has changed his mind. He says his plan B will depend on the completion of anticipated financing. While Elon Musk has extensive experience in the technology sector‚ his first million-dollar company‚ Tesla‚ was founded without a home. Musk's mother‚ Maye‚ and siblings‚ Kimbal and Tosca‚ helped him establish the company. He has since produced over a dozen films and TV shows. So‚ what is his plan B if the board rejects his offer? Tesla CEO Elon Musk has publicly offered to buy the rest of Twitter Inc.‚ which has a 9% stake. Elon Musk's bid has raised eyebrows after he disclosed his 9.2% stake. As Twitter's board member‚ Musk couldn't own more than 14.9% of the company. Besides‚ he'd be prohibited from owning more than 14.9% of Twitter stock - his term on the board would end at the company's 2024 annual meeting. Twitter's management is now considering a poison pill in order to limit Musk's stake and allow stockholders to purchase more shares at discounted rates. If Elon Musk's offer to buy Twitter is rejected‚ he'll have to decide whether to continue his hostile takeover of the company. Elon Musk has a history of under-performing his companies‚ so if Twitter's board rejects his takeover bid‚ he'll need to figure out a plan B. However‚ if he's successful‚ the company will likely be worth at least $41.39 billion.

Elon Musk's criticism of Twitter

Tesla CEO Elon Musk has recently been criticizing Twitter for banning trolls. It is not known whether or not he actually owns any Twitter shares‚ but he's currently the largest shareholder and would-be owner of the social network. Musk has self-identified as an advocate of free speech and he has been a regular contributor to Twitter for the last 10 days. Musk's criticism of Twitter has led to a lawsuit from former Twitter shareholders who say they missed out on rising stock prices. The Tesla CEO's criticism is the latest in a long line of criticisms directed at Twitter. Musk's criticism of Twitter arose as he expressed concerns about the role Musk plays on the social network. Twitter has resisted Musk's criticisms of the social network‚ stating that the board of directors has no role in policy decisions. Musk's criticism of Twitter's efforts to moderate content has received widespread acclaim and is likely to have a lasting impact. The billionaire tech mogul could try to change Twitter from within by retaining his shares. But given his 9% stake in the social network‚ he could choose not to sell Twitter stock. This would put him at odds with his fiduciary responsibilities‚ but he could also choose to hang onto his Twitter shares. A recent Bloomberg report claimed that Elon Musk owned a stake in Twitter‚ so he could try to change the social media platform through his investment. If Musk doesn't join the board of Twitter‚ it may be a sign of a future hostile relationship between the two. In that case‚ Twitter might decide to offer Musk a larger share than he currently does‚ or the two companies could try to merge. Either way‚ if Twitter's founders continue to be hostile‚ it may be time for Musk to move on to the next big project. This tweetstorm was also accompanied by suggestions on how Twitter can improve itself. One suggestion suggested turning the Twitter HQ into a homeless shelter‚ removing advertising from its premium service‚ and more. While Musk is now the largest individual shareholder‚ he continues to use Twitter as a marketing tool for his companies. Musk's tweets are often trending on Twitter. Whether Musk intends to use Twitter as a marketing platform for his own businesses or merely as a means of promoting himself‚ he's always been a part of the public conversation. One of the biggest challenges that Twitter faces is attracting new users. The social networking site is growing rapidly and Musk is not a stranger to controversy. He has previously referred to a British cave diver as a pedo‚ after criticizing him for attempting to save 12 boys in a Thai cave. In addition to that‚ Musk is also embroiled in a legal dispute with the SEC over his plan to take Tesla private.