Posted on 04/21/2022 10:09:14 AM PDT by Red Badger
Elon Musk bought a huge chunk of Twitter. Instead of joining the board, he decided to make an offer to buy the whole thing. When the board rejected him, he decided to secure the funds to make his case stronger. Now, the funds are in hand and ready to go to shareholders should the woke board either give in or be forced to accept.
According to Emel Akan at our premium news partners at The Epoch Times:
Billionaire Tesla CEO Elon Musk has secured the funding required financing to make a tender offer to buy Twitter and take the company private, according to a new SEC filing.
The document shows that Musk has received $46.5 billion in commitment to help finance the proposed deal. Through a tender offer, Musk plans to approach Twitter shareholders directly and offer to buy their shares within a specific time frame. He is, however, still considering whether to launch a tender offer for Twitter.
Musk, the richest man in the world, has secured $25.5 billion in debt financing from Morgan Stanley Senior Funding and other financial institutions, including Bank of America, Barclays, and Mizuho. He has also committed to provide $21 billion in equity financing, according to the document.
Musk is seeking to negotiate a “definitive agreement” with the board for the acquisition of Twitter.
“Twitter has not responded to the proposal,” Musk says according to the filing. “Given the lack of response by Twitter,” he is “exploring whether to commence a tender offer to acquire all of the outstanding shares” at a price of $54.20 per share.
The purchase will include the rights associated with the Rights Agreement (the poison pill), the filing stated.
If you love the news, check out The Liberty Daily's homepage. The billionaire, however, “has not determined whether to do so at this time.”
Musk made a bid on April 14 to take the social media company private for $54.20 per share, or around $43 billion in cash. The firm’s board of directors the next day unanimously adopted a “poison pill” defense to prevent a hostile takeover.
The poison pill, also known as a shareholder rights plan, is used as a defense strategy to make Musk’s takeover more expensive and difficult.
If Musk reaches 15 percent ownership, the poison pill will be triggered. This will allow other stockholders to purchase additional shares at a discounted price, thus diluting Musk’s ownership stake.
On April 4, Musk announced that he owned 73.5 million Twitter shares, or 9.2 percent of the firm. Musk later reduced his holdings to 73.1 million shares, or 9.1 percent of the company, according to an SEC filing. Twitter’s other large shareholders include The Vanguard Group (10.3 percent), Morgan Stanley (8.4 percent), and BlackRock (6.5 percent).
Yep, there it is. I predicted this was his endgame, to force a shareholder vote. Now Musk will get the Reddit investment clubs and crypto-millionaires to back his play and swing more votes to his side, and may actually have a chance to overrule the big money establishment players.
Well, It will be good to see President Donald Trump re- joining the Twitterverse!
He has a lot of Twitter stock.
He has lined up a lot of cash.
The Board is just sitting there, owning almost no Twitter stock, as I understand it.
Fiduciary responsibility? How can the Board block the sale without hurting the shareholders?
If he is able to but it, expect 90% of employees to quit. Musk will have to pull in his own people from Tesla and SpaceX.
Not to be a downer - I am cheering Musk for what he appears to be doing - but the scorned libs will try to burn Twitter to the ground if Musk succeeds.
It won’t happen.
They’ll burn it all to the ground before turning it over.
Any truly talented Lefty Techs won’t stick around.
Whatever he is allowed to buy will be a but a shell, a husk a body devoid of spirit.
Anything left will be boobie trapped, or blatatntly sabotaged.
Elon Musk is wealthy and powerful. So was Jack Ma.
We’ll see how the deep state reacts to the fear having it’s monopoly on public square speech challenged.
Our intelligence agencies and law enforcement agencies have the power and information to crush Musk or for that matter, anyone.
And, his entire business model is based on huge government subsidies and payments. “That’s a nice little car company [rocket company, solar company] you have. Be a pity if it lost its subsidies . . .”
My cynical conclusion: if Musk actually intends to change Twitter censorship, he will be brought to heel by the same folks who destroyed DJT’s presidency and who protected Epstein for decades.
Kind of like going to a Starbucks if you’re a cop.
The MSM will aid and abet Biden by claiming that the control of the media by the wealthy is a threat to democracy. Also, free speech is racist.
That’s a win if you ask me. If the end result of this was Twitter burned to the ground, that is what victory looks like.
whats the downside of 90% of the woke mob quitting again?
the 10% that remains?
I’m admittedly fairly ignorant on boards, shares, fiduciary duty etc. but it seems to me the board would have a very hard time justifying rejecting an offer coming in well above current market value. Seems like they’re setting themselves up for either lawsuits, SEC action, getting booted by the shareholders, or some combination of these. It is a given they come out publicly embarrassed as being completely in the tank for trying to maintain the obvious bias at twitter. But I guess if you live in a leftist echo-chamber bubble you’d convince yourself they are doing a good thing.
Seems Musk is serious. This man is a forward thinker and a doer. I like him the more I read. The fact that he developed a re-usable first stage rocket that could reverse course and land on a floating platform is what caught my attention. He is a man of vision.
won’t have to try hard.
amazon/google/apple will just parlar them.
I agree. You never know about these rich guys. Maybe that was his goal all along!
Well that's not a bad outcome either!
That is exactly what they are doing..................
Plus it put a frickin Telsa in space
Eventually, he'll be able to offsource many of the jobs to places like India. Much cheaper and they don't have an "agenda".
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