Posted on 04/19/2022 3:46:48 AM PDT by Kaslin
Elon Musk sought to buy Twitter for $43 billion but was met with a “poison pill” plan from Twitter's board of directors, which looks dire for his prospects, but is really just some mildly spicy hot sauce.
Their “Shareholder’s Rights” plan might give Elon Musk heartburn, but Musk can probably pop a few antacids and bulldoze over the opposition.
No, really.
Twitter is trying to stop the SpaceX and Tesla founder from making Twitter more useful for society through free speech and more profitable for its shareholders.
How could he do it? Well, much of his wealth is in shares of SpaceX and Tesla. So he would have to obtain financing (loans) to conduct a “leveraged buy-out” of Twitter.
His opposition is coming from the left. However, the left's political leaders -- the Biden administration cannot pursue their “Green New Deal” hoax without pushing sales of Tesla electric cars. That may present Musk with an opportunity.
I am just brainstorming here, throwing out some food for thought. Clearly this is not recommending whether anyone should buy or sell shares of stock. The topic is about non-financial motives -- including what is good for society.
(Excerpt) Read more at americanthinker.com ...
Musk’s problem with Tesla is that his plants are not unionized and he does not sell through dealers.
Unions and automotive dealers are very powerful political groups in this nation.
27 May 2022 is the Twitter stock-holder meeting. There are various things which could play out.
A number of us presently hold Twitter stock (I’m one of them, I will admit) and I hold around 75 shares/votes.
It’s possible that between his ownership of shares, and 40-odd percent of other owners...a ‘take-the-board-down’ situation might occur.
One key aspect which a lot of people fail to grasp...through this whole past decade....never has a cent of dividend been paid out. It’s a stock which has been more negative since day one, than positive. For any mutual fund/IRA fund to hold the shares....is a crappy investment, and people ought to demand their IRA/mutual companies dump the stock.
If Elon took over and kept it as a public stock...he needs to move the company out of California....fire all of the non-contributing members, and cut salary by one-third for most employees.....then start paying a one-to-two percent dividend on the stock.
I don't see that as a problem.
He may tender an offer directly to the shareholders. The board shouldn’t be able to prevent him from doing that legally.
Facebook and Twitter are US Intelligence programs that have been given “cover” by making them seen as normal stocks. The CIA is losing control of it’s cash cow just as Papa John did his pizza. There is going to be a real change in the coming months to these two stocks as the political DNC establishment seeks to protect their “assets” from being “turned”.
I wouldn’t refer to Twitter as a ‘cash-cow’...it’s a zero profit type operation....NO dividends for stock holders. Only folks who seemed to see cash...was the board, and the California tax revenue folks.
On Facebook, each year...it had a stock price gain to some degree (presently at $199 a share). On dividends? Never a cent paid. With their advancement into the digital world (gaming attached), they might actually build a product that accidentally pays a dividend (if they’d ever leave California and it’s tax revenue situation).
Guess who else Musk has been talking with? Silver Lake Investments. Guess who runs that business? Twitter Board of Director, Egon Durban.
Another interesting friendship Musk has is with Jack Dorsey, and Dorsey is having remorse about the direction he took Twitter over the years. His term on the Board ends in May. Then he is free to purchase more stock OR sell to Musk along with Durban.
This is going to be a fun ride in May.
“He may tender an offer directly to the shareholders. The board shouldn’t be able to prevent him from doing that legally.”
Would have worked in the 1980s, but the age of hostile takeovers has ended as companies have found legal tricks.
In this case the board have granted themselves the option of creating new shares that will give them majority voting power.
I will bet $100 that MUSK will NEVER be unionized.
HE is smarter than that.
The Biden government punishes him by giving $12,000 tax help to buyers of GM/FORD/Chrysler EV’s, and ONLY $7500 such help to Tesla buyers.
The big 3 are UNION—and UNIONS pay dearly into Dem campaigns.
I am waiting for the day MUSK sues the Feds for discrimination over that difference. $4500 per car is alot.
And Tesla still sells more eV’s.
I read that the twitter board NO NOT OWN shares of Twitter.
IF so—they MUST make the best FIDUCIARY Choice for the stockholders.
Otherwise, they are in violation of their board responsibilities.
That’s not a problem, it’s a feature. Teslas are selling like hotcakes and they are at least a plurality on the streets here in SoCal.
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