Posted on 04/15/2022 5:40:58 AM PDT by Red Badger
While Twitter is not required to accept Elon Musk’s multibillion dollar offer, the board does hold certain responsibilities to shareholders aimed at maximizing the company’s value, experts and industry leaders told the Daily Caller News Foundation.
“The question is whether the board would accept this offer,” Austen Allred, CEO and co-founder of Bloom Institute of Technology, told the DCNF. “They have a fiduciary responsibility to shareholders, so in order to turn it down they’d have to have a plan for how the company could be worth more than what Musk is offering, and they do expose themselves and the company to liability in doing so.”
Musk made an offer Thursday to Twitter to purchase 100% of the company for $43.4 billion, according to The Hollywood Reporter. The Tesla chief executive officer previously purchased a 9.2% stake in the technology platform on April 4, making him the company’s largest shareholder.
“The conservative thing from the board’s standpoint is to accept the offer or quickly seek out a higher bidder,” Allred added.
The board could reject Musk’s offer or refuse to negotiate even though the Tesla billionaire offered a substantial premium, as long it hasn’t broken its fiduciary responsibilities, Alon Kapen, partner and leader of the Emerging Companies and Venture Capital practice group at Farrell Fritz, told the DCNF.
The board has two fiduciary obligations, one of which is the Duty of Care, Kapen told the DCNF.
“The Duty of Care, means the directors have to be well informed and surround themselves with advisers who provide relevant information about the facts of the offer as well as other alternatives.”
“The company could decide to remain independent if this was the best path forward for the company and its shareholders,” Kapen told the DCNF.
If the board does decide to sell the company, it then has the obligation to find the best deal that offers the highest value available to its shareholders, according to Kapen.
Kapen believes that if the all-cash deal is accepted, Musk would have to partner with a private equity firm to acquire the company.
“Musk is the richest man in the world but the majority of his wealth is tied up in stock, not cash,” Kapen said. “He doesn’t have $50 billion in cash sitting around to buy Twitter so he will probably have to partner with a private equity firm.”
Another situation that could play out if the deal is rejected is a “hostile takeover,” Peter Rex, chief executive officer of Rex, a company that invests in technology companies, told the DCNF.
“If they do turn down the offer, Musk can begin a hostile takeover where he would buy up more stock increasing his voting and market power,” Rex said.
Editor’s note: This article has been updated.
Treat Musk like he is the next coming of Orange Man Bad.
Already happening...............
This assumes America still has the Rule of Law. It doesn't.
I remember about 25 years ago the Bronfmans tried to buy up music rights for mere billions.
The MGM movies were worth about $2 billion total.
The Twitter shareholders should be very grateful for Trump’s love of blasting off Twitter messages.
Facebook turned off my account around election time, but turned it back on to hopefully rebuild their customer base.
Maybe the Twitter board should offer to give DJT 100 shares for each new tweet.
My preference is the board should block Musk until the shares are about to be delisted.
The board will do as their Liberal/Commie handlers tell them to do and to hell with responsibilities or rule of law. Control is everything.
I remember the Hunt Bros trying to corner the market in Silver. They went broke..............
https://priceonomics.com/how-the-hunt-brothers-cornered-the-silver-market/
Major shareholder: Waleed arrested - Waleed Abulkhair Blog
https://waleedabulkhairen.wordpress.com › waleed-arrested
On Wednesday, October 2, 2013, Waleed was arrested by the Criminal Investigation and handed over to police in Jeddah, which in turn told Waleedthat his arrest was by the order of the governor of the region of Mecca, Prince Khaled Al-Faisal.
Saudi billionaire Prince Alwaleed released as corruption probe winds down | Reuters
https://www.reuters.com › article › us-saudi-arrests-princealwaleed-idUSKBN1FG0DT
RIYADH (Reuters) - Saudi Arabian billionaire Prince Alwaleed bin Talal, one of the kingdom’s top international businessmen, was released from detention on Saturday, more than two months...
No, they didn’t go broke. They transferred their assets around so as to appear to be “broke”, and were hounded by the authorities for years to figure out where the wealth went when the bankruptcy courts pursued them. However, they had excellent lawyering and were able to build back “bigger and better”.
What did they do with all that silver?...............................🤔
Twatter is nothing but a libtard only controlled mouthpiece
It’s only worth what single minded controlled libtards still using deem it to be.
The rest of us don’t give a flying flip in it’s current broken disabled condition 🤪
Bret Taylor - Independent Board Chair; Co-CEO, Salesforce
Parag Agrawal - CEO, Twitter
Mimi Alemayehou - Senior Vice President for Public – Private Partnership at Mastercard
Jack Dorsey - Co-Founder, Twitter; CEO and Co-Founder, Square Egon Durban - Co-CEO, Silver Lake
Martha Lane Fox - Founder and Chairperson, Lucky Voice Group; Former Co-Founder and Managing Director of lastminute.com; Crossbench Peer, House of Lords
Omid Kordestani - Former Executive Chairman, Twitter
Dr. Fei-Fei Li - Professor at Stanford
Patrick Pichette - General Partner, Inovia Capital; Former Senior Vice President and Chief Financial Officer, Google
David Rosenblatt - CEO, 1stdibs.com, Inc.
Robert Zoellick - Former Chairman of the Board of Directors of AllianceBernstein Holding L.P.
source: https://investor.twitterinc.com/corporate-governance/board-of-directors/default.aspx
How does this work exactly? Even if the board accepts Musk’s offer, can they force the individual shareholders to sell their shares to Musk? Can they hold out as individuals?
Love it.
Who knows? I am sure they sold most of it at a loss. I have worked for all of the Hunt’s first family, and none of us ‘little people’ ever figured out what happened, but the brothers children ended up with tons of it and used it in the oil and gas industry. So I believe they were able to transfer most of the wealth to the next generation legally, but I have no idea how. Lamar, Caroline and Margaret Hill never participated in the ‘silver’ scheme in a major way, but they all had there own troubles at one time or another in different industries.
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