Idle Thought on Musk's Attempt to Purchase Twitter

[NatMorton]

Reading the news this week, it's clear that Musk wants to purchase Twitter and Twitter's board and management doesn't want that. I think the odds are with Twitter as I think it's easier to construct road blocks against this kind of transaction than it is to overcome them. Here's the thing, Twitter's board and its management have a fiduciary responsibility to their shareholders, and Musk's offer is almost 20% over the share price, and that's quite a premium.

So here's a prediction: if Twitter's board and management are successful blocking Musk, get ready for a barrage of shareholder lawsuits, and some of them just might be successful with damages awarded.

 

[Gateman_Wen]

Reading the news this week, it's clear that Musk wants to purchase Twitter and Twitter's board and management doesn't want that. I think the odds are with Twitter as I think it's easier to construct road blocks against this kind of transaction than it is to overcome them. Here's the thing, Twitter's board and its management have a fiduciary responsibility to their shareholders, and Musk's offer is almost 20% over the share price, and that's quite a premium.

So here's a prediction: if Twitter's board and management are successful blocking Musk, get ready for a barrage of shareholder lawsuits, and some of them just might be successful with damages awarded.

MUsk's takeover could well spell then end for twitter, and the "fiduciary responsibility" you mention must take that into account.

Everything is not always about how much money you can get right this second.

All that is ignoring the social ramifications.

 

[NatMorton]

MUsk's takeover could well spell then end for twitter, and the "fiduciary responsibility" you mention must take that into account.

Everything is not always about how much money you can get right this second.

All that is ignoring the social ramifications.

Given Musk's track record of financial success, what evidence do you have he will wind up running the company into the ground? And if he does, so what? The shareholders will have already received fair value. They will lose nothing.

I think a case could be made here that Twitter's leadership will have acted on their own (political) interests and not the shareholders' interests.

 

[Cardinal]

Given Musk's track record of financial success, what evidence do you have he will wind up running the company into the ground?

Yishan Wong, founder of Terraformation and former CEO of Reddit, goes into detail on this. Warning: it's a looooong thread, but it's worth it. Also warning: everybody with a persecution complex isn't going to like his explanation.

And if he does, so what? The shareholders will have already received fair value. They will lose nothing.

I think a case could be made here that Twitter's leadership will have acted on their own (political) interests and not the shareholders' interests.

Not even close.

 

[SkyChief]

. . . Here's the thing, Twitter's board and its management have a fiduciary responsibility to their shareholders, and Musk's offer is almost 20% over the share price, and that's quite a premium . . ,

Yep. I predicted this in another thread:

Well, if Twitter's board rejects Musk's offer they will need to explain to their shareholders why they turned down a deal that would make the shareholders much richer. That could be awkward.

 

[Cardinal]

Yep. I predicted this in another thread:

"Because what Musk wants will destroy the company" isn't a terribly complex explanation.

 

[BlueTex]

Reading the news this week, it's clear that Musk wants to purchase Twitter and Twitter's board and management doesn't want that. I think the odds are with Twitter as I think it's easier to construct road blocks against this kind of transaction than it is to overcome them. Here's the thing, Twitter's board and its management have a fiduciary responsibility to their shareholders, and Musk's offer is almost 20% over the share price, and that's quite a premium.

So here's a prediction: if Twitter's board and management are successful blocking Musk, get ready for a barrage of shareholder lawsuits, and some of them just might be successful with damages awarded.

Unless you are somehow privy to the Thoma Bravo and other potential offers, why are you assuming Musk's bid IS in the best interest of shareholders? It sounds like you desperately want to believe Musk is some kind of hero here...

 

[NatMorton]

Unless you are somehow privy to the Thoma Bravo and other potential offers, why are you assuming Musk's bid IS in the best interest of shareholders? It sounds like you desperately want to believe Musk is some kind of hero here...

Yes, I am assuming Musk’s price is the best offer on the table. If I’m wrong, I’m wrong.

Do you have any evidence there is a better offer?

 

[BlueTex]

Yes, I am assuming Musk’s price is the best offer on the table. If I’m wrong, I’m wrong.

Do you have any evidence there is a better offer?

Of course not and you have no evidence it is the best offer... I am hearing there are others that are potentially looking to make an offer.. Should the board just accept Musk's offer without waiting for other offers?

 

[NatMorton]

Of course not and you have no evidence it is the best offer... I am hearing there are others that are potentially looking to make an offer.. Should the board just accept Musk's offer without waiting for other offers?

No, I never said that.

Do you have any cites that demonstrate other serious offers are on the table?

 

[jnug]

Reading the news this week, it's clear that Musk wants to purchase Twitter and Twitter's board and management doesn't want that. I think the odds are with Twitter as I think it's easier to construct road blocks against this kind of transaction than it is to overcome them. Here's the thing, Twitter's board and its management have a fiduciary responsibility to their shareholders, and Musk's offer is almost 20% over the share price, and that's quite a premium.

So here's a prediction: if Twitter's board and management are successful blocking Musk, get ready for a barrage of shareholder lawsuits, and some of them just might be successful with damages awarded.

But Musk is not trying to enhance Twitter as a business nor to enhance its asset value. Musk is serious about things like electric cars and spaceships, not software. He is simply playing with regard to Twitter. Twitter stockholders beware.

 

[Deuce]

Reading the news this week, it's clear that Musk wants to purchase Twitter and Twitter's board and management doesn't want that. I think the odds are with Twitter as I think it's easier to construct road blocks against this kind of transaction than it is to overcome them. Here's the thing, Twitter's board and its management have a fiduciary responsibility to their shareholders, and Musk's offer is almost 20% over the share price, and that's quite a premium.

So here's a prediction: if Twitter's board and management are successful blocking Musk, get ready for a barrage of shareholder lawsuits, and some of them just might be successful with damages awarded.

His plans to upend Twitter's business model would tank Twitter's stock price, so this does not support long-term fiduciary responsibility to shareholders, no. Twitter's board has a fiduciary duty to stop Musk from taking control of the company and implementing his disastrous policies.

Fiduciary responsibility does not mean "anything above the current stock price must be taken." Twitter's value can clearly rise higher than the random "lol 420" number Musk picked.

 

[independentusa]

Given Musk's track record of financial success, what evidence do you have he will wind up running the company into the ground? And if he does, so what? The shareholders will have already received fair value. They will lose nothing.

I think a case could be made here that Twitter's leadership will have acted on their own (political) interests and not the shareholders' interests.

Some of Musk's track record has been paid for with tax dollars, but I remember a take over of a local plant where employees owned much of the stock. One employee sold his stock to the company taking over the plant and bragged that it help pay for a deck on his house. Within a year that employee was laid off and eventually lost the house with the deck. Takeovers are not always good for the company and the employees and in the long term not even the stockholders.

 

[iguanaman]

Reading the news this week, it's clear that Musk wants to purchase Twitter and Twitter's board and management doesn't want that. I think the odds are with Twitter as I think it's easier to construct road blocks against this kind of transaction than it is to overcome them. Here's the thing, Twitter's board and its management have a fiduciary responsibility to their shareholders, and Musk's offer is almost 20% over the share price, and that's quite a premium.

So here's a prediction: if Twitter's board and management are successful blocking Musk, get ready for a barrage of shareholder lawsuits, and some of them just might be successful with damages awarded.

Saudi Arabian investor Prince Alwaleed bin Talal, one of the major shareholders in Twitter, rejected billionaire Musk's bid to take over the social media company. “I don't believe that the proposed offer by @elonmusk ($54.20) comes close to the intrinsic value of @Twitter given its growth prospects,” he tweeted

https://www.usatoday.com/story/money/2022/04/14/twitter-elon-musk-live-updates/7321977001/#:~:text=Saudi Arabian investor Prince Alwaleed,growth prospects,” he tweeted.

Obviously not all shareholders agree with you.... Musks offer is far from Twitters peak price.

 

[Helix]

If he bought Twitter for billions and then made Tweety unbannable, I'd be less likely to use his products. That would suck, because I might get a Tesla someday if it fits my needs.

 

[uptower]

 

[NatMorton]

But Musk is not trying to enhance Twitter as a business nor to enhance its asset value. Musk is serious about things like electric cars and spaceships, not software. He is simply playing with regard to Twitter. Twitter stockholders beware.

Twitter shareholders being guaranteed at least a 20% increase on their investment need not be wary of anything. That's a good deal.

 

[NatMorton]

His plans to upend Twitter's business model would tank Twitter's stock price,

Why do you think he wants to do that?

 

[NatMorton]

Some of Musk's track record has been paid for with tax dollars, but I remember a take over of a local plant where employees owned much of the stock. One employee sold his stock to the company taking over the plant and bragged that it help pay for a deck on his house. Within a year that employee was laid off and eventually lost the house with the deck. Takeovers are not always good for the company and the employees and in the long term not even the stockholders.

Whether this is good or bad for Twitter employees is immaterial.

 

[NatMorton]

Saudi Arabian investor Prince Alwaleed bin Talal, one of the major shareholders in Twitter, rejected billionaire Musk's bid to take over the social media company. “I don't believe that the proposed offer by @elonmusk ($54.20) comes close to the intrinsic value of @Twitter given its growth prospects,” he tweeted

https://www.usatoday.com/story/money/2022/04/14/twitter-elon-musk-live-updates/7321977001/#:~:text=Saudi Arabian investor Prince Alwaleed,growth prospects,” he tweeted.

Obviously not all shareholders agree with you.... Musks offer is far from Twitters peak price.

He has his opinion, and I have mine.

Perhaps Twitter's tolerance for free speech would increase if the good Prince took the company private?

 

[BlueTex]

He has his opinion, and I have mine.

Perhaps Twitter's tolerance for free speech would increase if the good Prince took the company private?

What percentage of Twitter shares do you own?

 

[PirateMk1]

Reading the news this week, it's clear that Musk wants to purchase Twitter and Twitter's board and management doesn't want that. I think the odds are with Twitter as I think it's easier to construct road blocks against this kind of transaction than it is to overcome them. Here's the thing, Twitter's board and its management have a fiduciary responsibility to their shareholders, and Musk's offer is almost 20% over the share price, and that's quite a premium.

So here's a prediction: if Twitter's board and management are successful blocking Musk, get ready for a barrage of shareholder lawsuits, and some of them just might be successful with damages awarded.

That chaos is probably part of the plan. I think its hilarious.

 

[PirateMk1]

"Because what Musk wants will destroy the company" isn't a terribly complex explanation.

How?

 

[AmNat]

Reading the news this week, it's clear that Musk wants to purchase Twitter and Twitter's board and management doesn't want that. I think the odds are with Twitter as I think it's easier to construct road blocks against this kind of transaction than it is to overcome them. Here's the thing, Twitter's board and its management have a fiduciary responsibility to their shareholders, and Musk's offer is almost 20% over the share price, and that's quite a premium.

So here's a prediction: if Twitter's board and management are successful blocking Musk, get ready for a barrage of shareholder lawsuits, and some of them just might be successful with damages awarded.

While you are objectively and obviously right, I highly doubt anyone will be successful at getting a judgment against Twitter over this. It’s not as if such concepts as the rule of law or fiduciary duty actually matter in politically important cases. And the courts have allowed poison pills even in completely apolitical cases as well.

 

[OrphanSlug]

Reading the news this week, it's clear that Musk wants to purchase Twitter and Twitter's board and management doesn't want that. I think the odds are with Twitter as I think it's easier to construct road blocks against this kind of transaction than it is to overcome them. Here's the thing, Twitter's board and its management have a fiduciary responsibility to their shareholders, and Musk's offer is almost 20% over the share price, and that's quite a premium.

So here's a prediction: if Twitter's board and management are successful blocking Musk, get ready for a barrage of shareholder lawsuits, and some of them just might be successful with damages awarded.

He has his opinion, and I have mine.

Perhaps Twitter's tolerance for free speech would increase if the good Prince took the company private?

You do realize that what Musk is doing is more or less a publicity stunt. Even if by some amazing chance Twitter becomes privately held (in full or by some strong majority) we have no real indication that everything else would stay constant.

A few things for you to consider when it comes to Twitter.

Publicly held completely diluted stock, privately held in some miracle buy, some strange combination of the two does not really matter. Terms of services are just that no matter whom is at the helm making choices which has no real association to free speech. Frankly, everyone that has been removed from the platform for whatever reason still has their rights.

Another matter from the above Trump's social media platform, GETTR, and several other attempts to have right leaning social media platforms masquerading as "principles of free speech" are having lackluster successes to say the least. You could argue all of them have already fallen into obscurity.

If, and I do mean if, Twitter goes private under Musk and there is some mass invite of those kicked off the platform to come back we have every indication those still there may go elsewhere. Which is the basic premise of capitalism in the first place, where there is demand someone will supply. You guys really think everyone will stick around for some massive change of considerations at Twitter? I mean, you guys all flipped when a few were kicked off. You think those still there will sit back if those banned come back?

Given all that, what really makes you think this will in anyway end the way you are trying to suggest?