New Filing Reveals the Full Story Behind Elon Musk's Bid to Buy TwitterElon Musk's bid for Twitter elicited a storm of debate on its early stages. The board of directors considered historic challenges in scaling the enterprise‚ monetary risks‚ and execution risks. Additionally‚ there was concern that Musk would attempt an unsolicited takeover. However‚ the board ultimately deemed Musk's first offer the most reasonable. Read on for more. Now‚ you know the full story behind Musk's bid to buy Twitter.
Elon Musk's bid to buy TwitterThe recent revelations about Elon Musk's bid to buy Twitter have many people nervous. Although it is a relatively small social media platform‚ it has been credited with sparking the Arab Spring and is accused of having a hand in the storming of the U.S. Capitol in 2021. President Donald Trump is working on a rival to Twitter called Truth Social. He told Fox News on Monday that he will not return to the site. The White House did not comment on the deal but said President Joe Biden has long worried about the power of social media and the potential to censor the free speech of the American public. People familiar with the negotiations say that Musk's public declaration is unusual at this stage of the negotiations. According to the people briefed on the discussions‚ the deal was expected to close in three to six months. However‚ the tweets could also indicate Musk is trying to drive down the price of the deal. While the company did not disclose the size of its stake in the deal‚ it said it would be worth about $46.5 billion. But before Musk can announce the deal‚ he must finalize the financing. It's unclear whether Musk plans to integrate cryptocurrency into Twitter. But the deal will need a significant amount of financing. Since Musk is already the world's richest man‚ the deal will likely require Musk to borrow from his own Tesla shares. But the new filing did reveal that Musk has a plan for the future of Twitter.
Larry Ellison's backingElon Musk is assembling a huge group of investors to back his bid to buy Twitter. These investors include a Saudi prince and the founder of a bitcoin exchange. As of Wednesday‚ the group includes 19 individual investors‚ including Larry Ellison‚ who has been backing Musk since 2015. The Saudi prince has already invested in Twitter‚ and will roll 35 million of his shares into the bid vehicle. A longtime friend of Elon Musk‚ Larry Ellison was recently added to the board of Tesla. The billionaire has an estimated net worth of $100 billion. He has a history of investing in companies that benefit from the Internet‚ including Fidelity‚ Andreessen Horowitz‚ Binance‚ and the Qatari state investment fund. However‚ it's unclear what exactly he wants from the company. While it's difficult to determine who exactly is behind the billion-dollar investment‚ it is important to note that Ellison has invested $1 billion into Twitter. His firm's other investment in the company includes Sequoia Capital‚ which has supported many tech companies since the 1970s‚ including Google‚ Apple‚ Airbnb‚ and Alibaba. In addition to these companies‚ the deal also includes Qatar Holding LLC‚ a global investment house founded by the Qatar Investment Authority‚ and Brookfield Asset Management‚ a Canadian asset management firm. The investment by Ellison's firm is unclear‚ but it does suggest that he believes that Musk's bid to purchase Twitter is a good one.
Elon Musk's initial offerThe board of Twitter has approved a $46.5 billion deal with Elon Musk‚ using loans from Morgan Stanley and assets of the target company as collateral. As Musk is a longtime supporter of free speech‚ he has criticized Twitter's moderation team. Musk has remained secretive about his private motives‚ and some of his tweets have fallen into the not quite illegal category. But Musk is not going to stop there. He has committed to purchasing 9.1 percent of Twitter's shares‚ which is not enough to make him the world's richest person. Rather‚ he wants to buy the entire platform. As a result‚ his initial offer to buy the company has taken a wild turn. While Musk is already the world's richest person‚ the deal would require borrowing against Tesla stock. The move is unlikely to affect Twitter's stock price. The tweet-happy entrepreneur will retain his seat on Twitter's board. However‚ Twitter will need to keep all of its records. Some conservative members have claimed that Twitter has become a punch-bag for conservatives. In response to their demands‚ Elon Musk's initial offer to buy Twitter has already sparked a firestorm. While Musk has long been a prolific tweeter‚ his offer to buy Twitter is far from convincing. Twitter has been an open-source town square for years‚ and it has proactively worked to limit hate speech. Musk also wants to add an edit button to Twitter. The company may have to make sweeping changes to make Twitter more attractive to people. In the end‚ he may not be able to make it work.
Dorsey's responseA tweet by Twitter CEO Jack Dorsey ripped into the board of directors of his company. The social network has been mired in a dispute over Elon Musk's $43 billion bid for Twitter. Musk has previously said that he plans to buy Twitter to use it as a platform to build the next big thing. However‚ Dorsey says he does not want to sell the company to someone else. Initially‚ it was expected that Twitter would reject Musk's bid‚ but after Musk revealed his financing plan‚ Twitter warmed up to the idea. He has 83 million followers on Twitter and has publicly questioned the company's content moderation policies. He has also hinted that he would like to see content moderation on Twitter looser. But the CEO of Tesla has not yet agreed to sell his company. Musk's bid for Twitter sparked a flurry of tweets from Jack Dorsey. Despite his criticisms of the board‚ Dorsey remains a board member. He plans to step down after the May 2022 meeting of Twitter shareholders. If Musk doesn't withdraw his offer‚ Dorsey will step down as CEO. This would be the first time he has been fired by his employer.
Musk's personal guarantee on loan secured by Tesla sharesElon Musk's personal guarantee on a $12.5 billion loan secured by Tesla shares raises several ethical questions. If the company is unable to pay back the loan‚ Musk may be forced to sell off his shares. But if the company has strong prospects‚ Musk should be able to pay back the loan without having to sell any of his shares. A professor of finance at Boston University explains that the risk of Musk selling off his shares is high. The stake in Twitter that Musk has in Tesla is worth about $3.4 billion‚ and he could be forced to give up that stake if the deal fails. If that were the case‚ Musk would lose his Twitter stake and his equity stake in SpaceX. That would leave him with virtually no personal assets to keep his Twitter business afloat. However‚ he is still committed to closing the deal. He has given Morgan Stanley less than a week to come up with a loan package that suits him. Aside from this‚ Musk is also keeping in close touch with his former employers‚ including Morgan Stanley and Bank of America. The company's prospectus lists Morgan Stanley as lead arranger. Morgan Stanley has also committed $5.5 billion to Musk‚ Twitter‚ and the other companies. Jared Birchall‚ Musk's former partner at Morgan Stanley‚ worked at the bank from 2010 to 2016‚ and left to run his own company‚ Excession LLC.
Musk's decision to roll the dice to make deal workThe timetable Musk gave investors for a Tesla financing deal has caused a lot of frustration for employees and SpaceX investors. While Musk may have been rushing to the parking lot across the street to meet the Boring Company CEO‚ many believe that there are still buried projects inside Tesla that need more capital. If that's the case‚ it's time to consider your options and roll the dice. In addition to being an outrageously wealthy businessman‚ Musk has faced criticism from progressives for bringing on his billionaire father. The infamously egotistical Elon Musk has more wealth than the bottom half of the world combined. One progressive who criticized Musk's decision cited a tweet from Sen. Bernie Sanders‚ who argued that the richest fifty Americans own more wealth than the rest of the population. The implication is that Musk represents global income inequality in a very real way. As a CEO‚ Elon Musk is a hugely wealthy businessman who has interests in various industries. While his Twitter business is his largest source of wealth‚ his personal interests span the world. It's no surprise that Elon Musk turned down the Twitter board seat‚ as it would only give him a 14.9% stake in the company. But that didn't stop him from starting a larger plan and huddling with a team of bankers‚ lawyers‚ and executives.
20% fake/spam accounts, while 4 times what Twitter claims, could be *much* higher.
My offer was based on Twitter’s SEC filings being accurate.
Yesterday, Twitter’s CEO publicly refused to show proof of <5%.
This deal cannot move forward until he does. — Elon Musk (@elonmusk) May 17, 2022