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Businesses The Almighty Buck Twitter

Musk To Explore Potential Tender Offer for Twitter, Has $46.5B in Committed Financing for Deal (cnbc.com) 255

Elon Musk is exploring whether to commence a tender offer for Twitter, according to a new securities filing. From a report: The updated filing published on Thursday says Musk has received commitments for $46.5 billion to help finance the potential deal. Musk has not yet determined he will make a tender offer for Twitter or whether he will take other steps to further the proposal, the filing states.
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Musk To Explore Potential Tender Offer for Twitter, Has $46.5B in Committed Financing for Deal

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  • by ttspttsp ( 7600944 ) on Thursday April 21, 2022 @09:21AM (#62465066)
    I'm not sure why they don't go for it, big guaranteed short-term gain. Take your profit and re-invest... windfall.
    • Comment removed based on user account deletion
      • by Kokuyo ( 549451 )

        I can get behind the idea that this wouldn't make Twitter better...

        But I feel you're drastically overvaluing what Twitter is right now.

        • Re: (Score:2, Flamebait)

          Comment removed based on user account deletion
        • Twitter is not currently profitable but they are growing in revenue (I think something like $2B to $5B over the past few years) and active-monetizable-users year-over-year so shareholders could say that they feel that growth would be better under the status quo than under Musk.

      • Maybe there will be more money for the shareholder down the road, yes. But how long is that road? One must consider time value of money when making investment decisions.
    • Depends when they bought. $54.20/share is good right now but even in just July '21 it was close to $70, so it will depend.

      https://finance.yahoo.com/quot... [yahoo.com]

      • Which was at the height of the pandemic and idiots were thinking it would actually be worth something. That bubble popped pretty damn quick.

    • I'm not sure why they don't go for it, big guaranteed short-term gain. Take your profit and re-invest... windfall.

      Because they think they'll make more in the long run. That's really the only financial reason. The other is that they don't believe Elon or think some other challenge will show up.

      Let's be honest here, Elon is fond of saying a lot of things are going to happen that never materialize and aren't particularly likely to materialize. Remember Hyperloop? He said it's not anymore complex than an air hockey table! Super cheap tickets! Yeah, that hyperloop has totes killed air travel between LA & SFO / Vegas

      • You could be right about Elon. But if a tender offer comes for the shareholders, it's legally binding.
    • by JBMcB ( 73720 )

      Probably because Twitter's Board of Directors hold very little Twitter stock (some don't own any) so they don't really care.

      • well that's a violation of the BOD's fiduciary responsibility, which is required by law when a company is publicly traded.
  • Twitter has already poisoned pill to this and it's not going to go anywhere. I'm not entirely clear what his game is but I'm fairly certain it's some kind of pump and dump scam. The SEC has stopped and forcing laws on billionaires and he knows this.

    We're about to find out what a completely unregulated stock market looks like. Buckle up kiddies it's going to be a fun ride.
    • by Tablizer ( 95088 )

      Musk is known for playing investment games using rumors and hearsay, and has been partially sanctioned in the past. [sec.gov]

      Twitter with a troll in charge is like a wolf running the hen house. I hope current owners and board can keep the creep out.

      (It's not that Twitter is ran by wonderful people, it's just that Musk sucks more.)

    • by xvan ( 2935999 )
      The pump and dump argument stops de moment you give Musk a reason to dump. The poisoned pill has tied SEC hands.
  • Tendor Offer (Score:5, Informative)

    by skam240 ( 789197 ) on Thursday April 21, 2022 @09:52AM (#62465206)

    Maybe it's just me but I had zero idea what a "tendor offer" was and neither the slashdot summary nor the source article were helpful at all in figuring that out. For those of you in the same boat.

    How a Tender Offer Works
    A tender offer often occurs when an investor proposes buying shares from every shareholder of a publicly traded company for a certain price at a certain time. The investor normally offers a higher price per share than the company’s stock price, providing shareholders a greater incentive to sell their shares.
    https://www.investopedia.com/t... [investopedia.com]

    • Sometimes scam Tender offers come in that are lower than market price. However, Twitter's poison-pill guarantees that a tender offer would be meaningless. He would just end up overpaying. The only way Musk will take over Twitter is to acquire a 14.9% stake and engage in a proxy battle for seats on the board of directors.
  • by MpVpRb ( 1423381 ) on Thursday April 21, 2022 @10:13AM (#62465300)

    ..even when he does unbelievably stupid stuff. Twitter is a distraction and a colossal waste of time and money. He should focus on doing useful stuff.

    • Twitter is a distraction and a colossal waste of time and money.

      While I'm inclined to agree with you, people have said that literally about every business venture Musk ever got into.

  • He could be exploring a potential Tinder offer for Twitter.

  • How does buying Twitter help make life interplanetary? Or help the transition from fossil fuels? Because for $47B, one could do a lot of good on either of those fronts.

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