The IT Nerd

You might recall that recently Elon Musk bought 10% of Twitter stock. Then he was named to the board of Twitter, but only briefly as he pulled out of that days later. At the time I said this:

So where does this go from here? Maybe he goes away. Or maybe he decides to do a hostile takeover of Twitter. I don’t know. But I’ll be watching as this story is far from over.

It appears we’re going with the takeover play:

Elon Musk has made an offer to buy Twitter (TWTR) and take it private, saying he believes it needs to be “transformed.”

According to an SEC filing, Musk has offered to acquire all the shares in Twitter he does not own for $54.20 per share, valuing the company at $43.4 billion. That represents a 38% premium over the closing price on April 1, the last trading day before Musk disclosed that he had become Twitter’s biggest shareholder, and an 18% premium over its closing price Wednesday.

Musk said the cash offer was his “best and final offer,” according to the SEC filing, adding that if it’s not accepted he would have to reconsider his position as a shareholder.

The Tesla CEO sent an offer letter to the company Wednesday night, according to the filing.

Twitter had this to say:

Twitter issued a statement Thursday confirming that it had received the offer. It said its board would carefully review the proposal “to determine the course of action that it believes is in the best interest of the company and all Twitter stockholders.”

Having Twitter become a private company under the control of Musk would likely create chaos. It could cause staff to leave, it could cause the platform to be less relevant. Truly, anything can happen. And that would also be true if Twitter does not accept his offer as he would be likely to leave a trail of destruction going out the door. While I would normally say that you should get your popcorn ready to watch the fireworks, there’s really no good ending to this that I can currently see.

This entry was posted on April 14, 2022 at 8:19 am and is filed under Commentary with tags Twitter. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.