Elon puts in an offer to buy ALL of Twitter. [LOCKED DUE TO POLITICS]

[JBee]

Looks like EM has gone nuclear and has filed to the SEC to buy all of Twitter’s shares for $54.20 each – a total of $41.4bn based on 763.58m shares outstanding.

EM said:

“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,” Musk wrote in the letter to Taylor.

“However, since making my investment I now realise the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.

“As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced.

“My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder. Twitter has extraordinary potential. I will unlock it.”

As previously discussed it seems EM is serious about taking free speech to the next level, and will not back down and be muted by the media. The question is just how far this will open up the next wave of fundemental changes in information exchange and cultural progress, without the powers that be, interfering with his vision and goals.

https://www.google.com/amp/s/amp.theguardian.com/technology/2022/apr/14/elon-musk-buy-twitter-share

 

[rr6013]

That puts the decimal point on Elon’s (aka Tesla/SpaceX/Neuralink/Starlink,/Mars/etc…) advertising budget. Welcome to the Bn‘aire era where real politik/capitalism subsumes into a form of universal-imperialism

 

[Dusty]

C'mon, Elon. Just watch YOUR lane and hit YOUR targets. This had better not slow down his day jobs.

Twitter has one purpose-to turn eyeballs into dollars. Period. Full stop.

It's not a bastion of free-speech, and never was. Freedom of speech means you can say what you like without the Government or entity preventing you for saying it. A private business CAN prevent someone from using their platform to say whatever, you just have to say it elsewhere.

He can say "Dusty looks like 5 pounds of shit stuffed in a 1 pound bag!", all he wants because that's a protected right. But, nowhere in the constitution does it say I have to drive him to a street corner downtown and let him use my bullhorn to say it.

 

[JBee]

C'mon, Elon. Just watch YOUR lane and hit YOUR targets. This had better not slow down his day jobs.

Twitter has one purpose-to turn eyeballs into dollars. Period. Full stop.

It's not a bastion of free-speech, and never was. Freedom of speech means you can say what you like without the Government or entity preventing you for saying it. A private business CAN prevent someone from using their platform to say whatever, you just have to say it elsewhere.

He can say "Dusty looks like 5 pounds of shit stuffed in a 1 pound bag!", all he wants because that's a protected right. But, nowhere in the constitution does it say I have to drive him to a street corner downtown and let him use my bullhorn to say it.

He just bought himself a very sizable $40bn bullhorn, that he plans to share!

 

[CyberGus]

The price he's paying is over $100 per active user. Wouldn't it be cheaper to start a new platform and pay people to use it?

 

[Dusty]

The only eyeballs he'd get with a new platform are a percent of his current followers. He's paying for all the eyeballs currently on Twitter that would stay if he left and started something new.

 

[Ogre]

In order to buy Twitter, Musk needs 41% of the rest of the shareholders to vote for this proposal. Here are the top shareholders of Twitter.

Seems like the prospect of getting a 50% return should appeal to these largely institutional investors.

Twitter will almost certainly tank and take weeks or months to recover if this falls through and these guys all know it.

I’m sure there is panic in the halls at Twitter corporate. The C suite and lots of freeloaders are likely sweating bullets.

 

[JBee]

In order to buy Twitter, Musk needs 41% of the rest of the shareholders to vote for this proposal. Here are the top shareholders of Twitter.

Seems like the prospect of getting a 50% return should appeal to these largely institutional investors.

Twitter will almost certainly tank and take weeks or months to recover if this falls through and these guys all know it.

I’m sure there is panic in the halls at Twitter corporate. The C suite and lots of freeloaders are likely sweating bullets.

That list shows where the shareholder bias stems from. Thanks for posting it.

 

[Ogre]

The price he's paying is over $100 per active user. Wouldn't it be cheaper to start a new platform and pay people to use it?

If you go to a new platform, you have to spend hours rebuilding your social network on the new platform. If you are an early adopter, you might go in and find a few connections in common, but many missing. So you have to do it 2-3 times.

Building a new network means your users must invest in that new network enough to rebuild their networks. They must also abandon the older one because if you build a new network and people continue using Twitter, your new network will die off.

Look at all of Trump’s and the Republican’s efforts to side-step Twitter. Even though Trump posted a bit on the new network, he continued posting on Twitter so there was no need for his followers to move to that new network. Followers who wanted to follow Trump and other popular figures had no need to build a network on the new platform because they could just stay on Twitter.

The network effect is powerful.

 

[Qball]

Personally I doubt they will sell all their shares, twitter will eventually recover from the crash.

 

[Ogre]

Personally I doubt they will sell all their shares, twitter will eventually recover from the crash.

“They” is not the Twitter board. It will be the shareholders.

Nearly 50% of the shares are held by a few institutional investors. Some of those might be able to negotiate separate deals with Musk to participate going forward (I would in a heartbeat).

If there were some indication that Twitter‘s management had something in the wings that would unlock some hidden value, I could see some of the other institutional investors hanging on. But I just don’t see that out there.

Maybe he’s going to give it to Karpathy as a gift.

 

[JBee]

The other component to consider is how EM is going to pay for the purchase? His Tesla shares? A loan? A combination of those?

The split seems convenient. Let the shuffle comence...

I've mentioned this elswhere before, but I really think EM will have a crack at FB etc as well using Twitter, along with marketplace, banking and crypto, blockchain trading and contracts etc all enabled over Starlink to make it fairly untouchable over time. It will wrap up so much of the "business" side of the web that it might become worth more than Tesla itself.

Will he take Twitter private? Its only his name on the form.

Your move social media data pirates.

 

[Ogre]

Musk has a few billion sitting around from his previous TSLA sale. He can also take a loan against his existing stake in Tesla. It’s also possible he will find other investors willing to take a stake in Twitter along side him. He doesn’t need to buy all of Twitter himself to do this, Blackrock, ARK, or Jack Dorsey might opt to go with him on this.

Lots of ways he can do this without selling his TSLA stake.

 

[TheLastStarfighter]

If I’m a bank, and I can pick one person to give a loan to for buying a company, it’s the new owner of Twitter.

 

[John K]

Elon’s motivation to buy Twitter

1. Becomes Tesla’s marketing medium with subliminal messaging
2. Reverse/revenge FUD
3. Elon is a Bond villain and is creating Tesla/State news
4. Behind the scenes, words were exchanged and the Situation became a pissing match.


(With sage like clarity, everyone nods in complete agreement)