“I love Twitter,” Musk tweeted in December 2017.
“How much is it?” He replied a few minutes later.
The tweet, almost certainly forgotten by everyone except Musk, received a response from the billionaire on Friday night with an inverted smiley emoji.
Elon Musk posted on Twitter in December 2017 his love for Twitter
Musk tweeted in the early hours of Saturday morning with an emoji upside down smile.
Even though Musk may have mocked the prospect of buying the social media platform at the time, Musk has now put his money where he’s with a $ 43 billion bid for the company.
The offer itself, which Musk said was final, valued Twitter at $ 54.20 a share – above the pre-offer closing price but below the $ 77.06 high seen in February last year.
On Thursday, CEO Parag Agrawal told staff they were still weighing Musk’s offer.
But on Friday, Twitter’s board announced the dramatic “poison pill plan” to prevent Musk from further increasing his stake in the company.
The board has indicated it will not go slow, saying any acquisition of more than 15 per cent of the company’s shares without its OK would trigger a plan to flood the stock market and make a much more difficult takeover.
There have been some interesting responses to Musks’s tweet with some from 2017 and others posted just hours ago
Even with a modest and rigid proposal, which could help the council argue in favor of rejection, it is a difficult time that could lead to lawsuits from almost everyone involved.
To be able to repel Musk’s offer, Twitter’s board must be on solid ground, arguing that the company is worth more, said Wharton School economics professor Kevin Kaiser.
Shareholders who believe the board is rejecting a lucrative deal will be free to sue Twitter.
Musk has the option of bypassing the board and trying to buy shares directly from market shareholders, but this could lead to tedious negotiations with some shareholders insisting on more money.
“Twitter’s board has limited capacity under the Delaware law to stop a direct auction of shareholders, something Elon Musk did not do, but could do if he chose to,” said the Wharton School of Economics professor. , Kevin Kaiser.
“If it does, and if shareholders choose to bid for their shares, then it can succeed without the need for board support or approval.”
Musk, in response, is now said to be recruiting others to join his offer, the New York Post reported Friday night.
Musk told a TED conference pictured above that he had “enough funds” to complete the deal, but economic analysts have described the situation as more complicated.
Twitter’s share price remains below Musk’s $ 54.20 bid, suggesting the market is uncertain whether its bid will be accepted by the board
While the net worth of the serial businessman is estimated at $ 265 billion by Forbes, his fortune is not in a bank account waiting to be spent.
Musk told a TED conference he had “enough funds” to complete the deal, but economic analysts describe the situation as more complicated.
Much of Musk’s wealth comes from shares in the electric car maker Tesla, which he runs.
Musk would have to convert a portion of his Tesla holdings into cash, either by selling shares or by taking out equity loans as collateral.
“The details of how Musk would finance the deal will determine the implications for Twitter,” Moody’s said in a note to investors.
Moody’s estimated that it would cost Musk $ 39 billion to buy all of Twitter’s outstanding shares, and that there would be a “high probability” that it would have to repay or refinance the existing debt of billions of dollars of the San Francisco-based company.
That was before moving the poison pill from Twitter, which is increasing the cost for Musk.
Musk posted a poll on Twitter that hinted that he might be considering sending his offer directly to shareholders.
He asked if getting the company private for the price offered should depend on the shareholders and not the board.
As the poll drew to a close on Friday, more than 2.7 million votes were cast, with nearly 84 percent in favor of the idea.
Selling a huge volume of shares to Tesla to buy Twitter would entail a large capital gains tax bill and could cause the electric car company to sink as the market is flooded with shares for sale.
Musk could keep his shares and get a loan, absorbing interest. Or he could work with a deep-pocketed partner, but that could happen when the strong-willed executive has someone to respond to about his decisions on Twitter.
On Thursday, Musk wrote on Twitter that if Twitter’s board rejects his offer, they will make their shareholders a “titanic” service.
Musk said that if Twitter’s board rejects his offer, they will make their shareholders a “titanic” service.
He says he wants to own the platform “not to make money”, but rather to strengthen freedom of speech.
“It’s not about finances,” Musk said, speaking at a TED conference in Vancouver on Thursday.
“My strong intuition is that having a public platform that is at the highest level of trust and that includes broad exclusions is important for the future of culture.
“Twitter has become somewhat of a de facto city square, so it is very important that people have both the reality and the perception that they can speak freely, within the limits of the law.”
He added that he was not sure he would be able to do so – but said he had a Plan B if the board rejected his offer. He declined to give further details on what this could entail.
Elon Musk responded with a laughing emoji to a version of the classic “Distracted Boyfriend” meme that mocks the Twitter board
Musk himself seems to be having fun with the drama.
On Friday, he mocked Twitter’s board for trying to stop him from hostile $ 43 billion ransom.
A Twitter user uploaded to Twitter a version of the classic “Distracted Boyfriend” mockery, mocking the Twitter board.
The photo showed “The Twitter Board” sadly looking at the option “to keep this easy gig that gives me shares”, as “Twitter investors” look with disgust because they are “happy with $ 54.20 per share – the amount of Musk’s unsolicited offer.
Musk responded to the meme with a laughing emoji.
Musk also responded to a poll of another account showing a majority of respondents in favor of his plan to make Twitter private, writing: “Thanks for the support!”
Despite Twitter’s latest move, Musk could still defy the board and take over the company in a proxy vote by voting for current executives – though that strategy could take years to work.
Musk had previously responded to reports that the board was considering a “poison pill” plan, writing on Twitter: “If the current Twitter board takes action against the interests of shareholders, it will violate their duty of trust.”
“The responsibility they would take would be titanic,” he added, apparently referring to possible shareholder lawsuits.
The Twitter board is chaired by President Bret Taylor, who is also co-CEO of the sales software giant Salesforce
Twitter CEO Parag Agrawal (left) and co-founder Jack Dorsey (right) also hold board positions
