It’s been a wild month of news for The social network we both love and hate. At the beginning of April, Elon Musk pulls out of Twitter, withdraws a 9.2% stake in the company, and plans to exercise his influence over the company through the board of directors. After stepping back from his tentative board seat, Musk devised an even more outlandish plan: He will buy the company outright and keep it private. Everybody bewildered about this and there is a idea and some of them idea doubts about the seriousness of the infamous tech mogul’s grand plans.
Musk’s $43 Billion Offer Twitter’s valuation is less than it traded for a year ago, begging the question: Is this guy real? We still don’t really know – Musk is smart and known to be prone to stupid stunts – but he’s apparently amassing cash with help from Morgan Stanley and Bank of America.
Musk is the richest man in the world, but he’s also relatively cash-poor for a major billionaire, so playing his game on Twitter would require him to cash out his shares at Tesla and SpaceXthe two companies he appears to be running while driving us all crazy with his completely unnecessary ambition to buy Twitter and reshape it in his image. Meanwhile Twitter is working to counter Musk’s advances with Poison defensethis would allow the existing shareholder to buy more shares at a low, low price, effectively diluting the company’s stock and driving his purchase price up.
Because of Musk We’re talking about that, anyone’s guess what happens next, but here’s what’s happened so far. We will provide updates as the story progresses.
Timeline of the story of Elon Musk-Twitter
first. US regulators say someone should really follow Elon Musk’s tweets
Before Musk bid for Twitter, SEC regulators said they had the power to subpoena the Tesla CEO over his tweets and even urged a federal judge not to let the moderator ignore the tweet. .
2. Elon Musk tweets that he’s “in serious thought” to build his own social media platform
Shortly after US regulators urged a judge to oversee Musk’s tweets, the Tesla and SpaceX CEO expressed that he was thinking seriously about building the ‘next Twitter’.
3. Elon Musk buys 9.2% of Twitter shares on April 4
Twitter publish a note confirmed that SpaceX and entrepreneur Tesla took a 9.2% stake in the company, working out about $2.9 billion based on Friday’s stock price (March 4).
4. Elon Musk wins a board seat on Twitter the next day, April 5
Twitter CEO Parag Agrawal announced that Elon Musk has been appointed to Twitter’s board of directors in a series of tweets:
5. In a major reversal, Elon Musk will no longer be on Twitter’s board, announced April 10
Later that week, Twitter CEO Parag Agrawal announced he would not be joining the social media company’s board. The revelation from Agrawal follows an unusual series of tweets from Elon Musk over the same weekend in which he wondered aloud to his more than 80 million followers if Twitter was dead, citing the frequency of tweets from some of the most popular figures on this social network are very low.
6. A Twitter shareholder sues after Musk failed to disclose his huge investment in Twitter
A Twitter shareholder sued Musk in a federal securities class action lawsuit because Musk failed to disclose his 5% stake in Twitter when requested. The plaintiff claims that this delay allowed Musk to buy more shares of Twitter at a lower price and trick people into selling Twitter stock for the increased profit.
7. Elon Musk offers to buy out the entire Twitter company for $43 billion on April 14
The billionaire said he was willing to pay 54.20 USD/share to buy 100% of the company’s shares. That would be an all-cash offering valuing the social network at $43.4 billion. He filed an offer with the SEC and tweeted it hours before being interviewed on Ted.
8. Elon Musk doing an interview at Ted hours after tweeting his big offer
The controversial Tesla and SpaceX CEO was set to speak at the TED2022 conference for a talk so highly requested that TED went live. available to the public.
9. The next day, April 15, Twitter’s board turned to the defense everyone had anticipated: the poison pill.
Twitter’s board of directors announced in a press release that the company is applying a limited shareholder rights plan – a “poison” in merger and acquisition jargon. Although the company did not name Elon Musk directly, Twitter is clearly trying to prevent the billionaire from buying this social network.
ten. Elon Musk Shares How He Funded His $43 Billion Bid For Twitter
In a nutshell: Musk plans to borrow about $13 billion for various fashions; borrowed $12.5 billion against its own equity; and paid out about $21 billion from its own stock. It’s a somewhat convoluted collection of funding, but Musk’s bid is hardly small, so the path to gathering the necessary cash in a pile can be convoluted.
