Maverick's Machinations: Musk, No Longer Twitter's Largest Shareholder, Gets Shot Down By Saudi Arabia's KHC; Will He Succeed In His Bid?

Swararjyamag ^ | 04 15 2022 | Staff

[yesthatjallen]

Vanguard group, an asset management company, becomes largest shareholder of Twitter, according to latest SEC data.

Musk's bid gets rejected by Saudi Arabia's Kingdom Holding Company (KHC). They own a 5.2 per cent stake.

Musk responds to Saudi Arabia's KHC by asking how much Saudi Arabia owns directly and indirectly, plus enquires about their views on freedom.

SNIP

[Pelham]

MySpace is the prime example of an early adopter that blew a big lead. Their failure to innovate and keep up with the evolving technology allowed Facebook to take over. So it can be done, but Facebook probably benefited from MySpace’s stupidity in order to pull it off. Once Facebook achieved a critical mass they were able to use the network effect against MySpace. There’s really not room for more than one big dog in these internet spheres.

[MinorityRepublican]

Same thing may happen to Facebook especially since it is stagnating right now. All you need is a new social media platform and it does not really take that much. It needs to be "cool" and really that's the game right there.

[caww]

Elon has offered $54.20

If they don’t accept,’ the board has to explain to shareholders’ how it will make them more money.

Elon will sell his shares

The price tanks to $15

Elon makes a new offer at a much lower price.

[Dave W]

There is no additional alternative. I don't think you understand. There are already two alternatives - Gettr and Truth Social - remember? Trump's company. I don't think the market can handle a third alternative.

Truth Social is barely functioning and Gettr gets zero buzz...there is not much going on there.

Twitter has 500 million tweets a day - that's a lot and it takes server farms around the world to handle the volume. Musk wants the social media company that is the gold standard. There is no reason on earth to start another one from scratch. This issue is about Twitter. Musk said that Twitter is the most important social media company and sets the standard of dialogue for the entire world. This is why he wants to own it to make sure there is an open dialogue and no suppression of data or canceling out a voice. If Twitter suspends someone, going on Gettr has zero effect/influence on anything.

This is a deathly serious fight and it is all hands on deck for the government and the oligarchs trying to stop Musk.

[caww]

.......”This is a deathly serious fight and it is all hands on deck for the government and the oligarchs trying to stop Musk”......

Absolutely serious.

[caww]

At what Musk was willing to buy for it’s stunning the shareholders aren’t having a fit - they stood to gain. But then of course those fighting Musk is all about power not wealth or profit at this level.

[Dave W]

There was someone on Bannon's show this afternoon, who believes the federal government and courts will not follow the law because they are so desperate to deny Musk. He said new law will be created out of thin air and when the threat is over, it will be considered a one off and they will then go back to observing the actual law once again.

He said the government can't afford to have Twitter in Musk hands - the danger is too high of citizens seeing facts/truth/reality - whatever you want to call it. Twitter is ground zero.

The DOJ announced this afternoon that they have started an investigation of Musk...interesting timing.

[Boomer]

FR, GAB, and MeWe are the only functioning real free speech social media sites of any consequence right now.

[Reno89519]

The DOJ announced this afternoon that they have started an investigation of Musk...interesting timing.

Link?

[caww]

Well this is typical left behavior when their control is challenged. Isolate and attack their opponents using their ‘weaponized’ Governmental offices. Power and control of what they have a stronghold on will never be taken easily. This will be a war if Musk wants to take it on.....I'm not convinced he thinks it will be worth it, rather he'll develop an alternative - especially since he now has the public's attention......or even encourage all twitters to follow him to one of the other sites, although they need a lot of work.

[FreedomPoster]

What about Gab?

Andrew Torba, CEO of Gab, offered Musk a board seat. Torba has working software and infrastructure, unlike Truth Social.

See here for the offer Tweet.

[FreedomPoster]

What about Gab?

Andrew Torba, CEO of Gab, offers Musk a board seat. He has working software and infrastructure, unlike Truth Social.

See here for the offer Tweet.

[zeestephen]

Unless Twitter can somehow transition to a successful subscription model, it is always going to be a challenge to make money with Twitter stock.

Bottom Line - getting 90% of your revenue from cell phone micro-ads is not a great business plan.

From memory, Twitter has had two profitable years since becoming a public company in 2013.

It has current annual revenue at $5 billion, and it lost $200 million in the most recent 12 month period.

It has almost $3 billion of debt.

Elon should offer to sell his stock to Vanguard at cost, then start his own Twitter.

Without the one year Covid-19 price spike, Twitter has never been above its IPO price in the last nine years.

email this chart printer-friendly format

[Dave W]

Agree - it’s nice to have them but the influence is questionable and MeWe isn’t particularly new, I don’t think. I’m only on Gettr and it’s rather quiet. Most are conservative - preaching to the choir, so it’s fairly tame. Twitter though is compelling - at least to me. Tons of energy and interesting takes even from conservatives.

[Does so]

“it is all hands on deck for the government and the oligarchs trying to stop Musk.”

Anything we peasants can do?

[Dave W]

There isn't much information and it involves Tesla. I heard it referenced on the radio - on a local show and I just googled it - there is no detail, but does confirm something is going on.

Clay and Buck

[POWG]

By making the offer Elon has effectively capped the Twitter stock price at $54.20. Nobody will pay more than that because they would lose money if the deal is accepted. While the board is deciding Elon can keep buying all the shares he wants. The average number of shares traded is about 37 million per day. Today there were 270 million shares traded. Elon could have bought half of them at a lower price than his offer. He could own 50% of the company before he has to file another report with the SEC in May.

[Reno89519]

Thanks!

[Dave W]

Agree about typical leftist behavior. Thanks for sending that link about the Gab offer, but creating an alternative or going to Gab doesn't fix Twitter and that is what Elon wants to do. He says Twitter is the place for dialogue. No liberal on Twitter is going to migrate to Gab or Gettr - it just isn't going to happen.

Elon wants to fix the controlled speech on Twitter, so focusing on another platform doesn't solve Twitter's issue.

[momincombatboots]

Twitter loves their 1%.