It has been a wild month of news for the social network that we love to hate. In early April, Musk took a bite out of the company, and plans to use his influence over the company through its board. After he backed out of his planned board seat, Musk came up with an even more outrageous plan: he would buy the company and take it private. Everyone freaked out about this and some of the opinions cast doubt on the seriousness of the tech mogul's grand plans.
Is this guy for real after Musk's $43 billion offer for the company? We don't really know what Musk is capable of, but we do know that he is cobbling together the cash with some help from Morgan Stanley and Bank of America.
Musk is the world's richest man, but he's also relatively poor for a mega-billionaire, so he would have to sell his shares in the two companies he owns to make his play on the social network. A poison pill defense would allow existing shareholders to buy more stock at low, low prices and push the price of Musk's bid up.
We're talking about it because it's Musk and anyone can guess what will happen next. As the story continues, we will provide updates.
The SEC urged a federal judge not to allow Musk to get away with using his social media platform to make false statements.
Shortly after the U.S. regulators urged a judge to monitor Musk's social media posts, the CEO of both companies expressed his desire to build a new social media platform.
According to a note published by the company, the founder of the company has taken a 9.2% share of the company, which works out to around $2.9 billion based on Friday's share price.
The CEO of the company announced that Musk was appointed to the board in a series of posts.
I’m excited to share that we’re appointing @elonmusk to our board! Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board.
— Parag Agrawal (@paraga) April 5, 2022
Parag Agrawal, the CEO of the social media firm, decided not to join the board. Over the weekend, Musk wondered aloud to his over 80 million followers if the social network was dying, citing a lack of regularity of some of the most popular people on the network.
Musk was sued by a shareholder because he failed to disclose his 5% stake in the micro-blogging site. The delay allowed Musk to buy more shares of Twitter at a lower price and cheat sellers of the stock out of their increased profits, according to the lawsuit.
The billionaire is willing to pay $54.20 per share for the company. The social network is valued at $43.4 billion. Hours before he was interviewed on Ted, he filed the offer with the SEC.
The CEO of the two companies was going to speak at the conference in order to have a conversation that would be available to the public.
A press release from the board of directors said that the company is adopting a limited duration shareholder rights plan. While the company doesn't name Musk directly, it is clear that they are trying to prevent him from buying the social network.
Musk intends to pay $21 billion from his own holdings and borrow around $13 billion in various fashions. It's a bit complicated, but Musk's bid is hardly small, so the path to collecting the needed cash in one pile is understandably convoluted.
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