A very rich man acquires shares in a company that some consider devalued. The investor in the past has criticized the company for everything and has refused to accept to enter its inner circle. Usually the next step of the attack is redemption.
Some analysts – and some may be afraid – say that Elon Musk will move after he refuses to join the Twitter board.
One week ago, when it was announced that he had acquired a 9.2% stake in social media (the largest ever), current CEO Parag Agrawal and founder Jack Dorsey welcomed the world’s richest man with laurels and immediately welcomed him to its board. company.
The issue, however, was one: among the terms of Musk’s participation in the platform’s board was that he could not acquire a share of more than 12.9%.
Now, the tale begins and evolves into… Game of Thrones, as the billionaire is free to take over Twitter. Some time ago, moreover, he had expressed his desire to create his own social media platform.
Musk has deleted several tweets he made in the last 24 hours. For example, he only deleted the tweet with an emoji that puts the pointer in front of his mouth (as if telling a secret) which he used to react to the official announcement that he will not be a member of the Twitter Board.
He also deleted several tweets with his thoughts on platform changes, such as removing ads, boosting the subscriber program and turning the company’s headquarters into a… homeless center. Finally, the tweet where he proposed the platform to be renamed to the most lewd itter Titter disappeared.
His tweet where you list the 10 accounts with the most followers also caused a lot of annoyance, commenting that they are not very active. “Is Twitter dying?” he wondered, provoking the public reaction of some high-ranking employees of the social media.
The warm welcome given by the founder and CEO of Twitter to Musk probably did not have the desired effect, given his chaotic style in Tesla management.
How could the acquisition be made
Since most of Musk’s wealth is in Tesla shares, if he wanted to acquire Twitter, he would have to work with private equity.
Twitter is not structured in the same way as many public technology companies (Meta, Alphabet, Snap). In them, the stock market does not equate to voting rights, thus protecting companies from a potential Musk.
In response, Twitter could make a costly move: sell its stock at a discount to reduce the value of a “hostile” investor’s share.
“We thought that the limit on the share market and the position on the board was intended to handcuff Musk. “Now, it is unlikely that he will become the guy who will just sell his share and leave,” an analyst told the Guardian.
However, although before the opening of Wall Street the share of Twitter was moving downwards, the announcement that Musk will not enter the board of directors of the company eventually gave it a strengthening of 1 to 2%.
So, if Elon Musk wants to take over Twitter, now – because of his moves – it will be much more expensive.
Moneyreview
Follow Skai.gr on Google News
and be the first to know all the news
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
