Twitter Re-Examines Elon Musk's Bid, May Be More Receptive to a Deal (1 hr ago, WSJ)

[hlthe2b]

Don't shoot the messenger...


Twitter Re-Examines Elon Musk’s Bid, May Be More Receptive to a Deal
Two sides are meeting Sunday to discuss takeover bid, people familiar with the matter say

https://www.wsj.com/articles/twitter-re-examines-elon-musks-bid-may-be-more-receptive-to-a-deal-11650822932

--snip--
Twitter is expected to weigh in on the bid when it reports first-quarter earnings Thursday, if not sooner, the people said. Twitter’s response won’t necessarily be black-and-white, and could leave the door open for inviting other bidders or negotiating with Mr. Musk on terms other than price. Mr. Musk reiterated to Twitter’s chairman Bret Taylor in recent days that he won’t budge from his offer of $54.20-a-share, the people said.

The potential turnabout on Twitter’s part comes after Mr. Musk met privately Friday with several shareholders of the company to extol the virtues of his proposal while repeating that the board has a “yes-or-no” decision to make, according to people familiar with the matter. He also pledged to solve the free-speech issues he sees as plaguing the platform and the country more broadly, whether his bid succeeds or not, they said.

--snip--
Mr. Musk already has said he is considering taking his bid directly to shareholders by launching a tender offer. Even if he was to get significant shareholder support in a tender offer—which is far from guaranteed—he would still need a way around the company’s poison pill, a legal maneuver it employed that effectively blocks him from building his stake to 15% or more.--snip--
One oft-employed tactic to push a bid, seeking to gain control of the target’s board, is out of reach for now. Twitter’s directors have staggered terms, meaning a dissident shareholder would need multiple years to gain control rather than a single shareholder vote. Twitter tried last year to phase out the staggered board terms given that they are frowned upon by the corporate-governance community, but not enough shareholders voted on the measure. The company is attempting to do so again at this year’s annual meeting set for May 25. Only two directors are up for re-election, and it is too late for Mr. Musk to nominate his own.

Twitter’s shares have been trading below his offer price since he made the bid April 14, typically a sign that shareholders are skeptical a deal will happen, though they did close up roughly 4% Friday at $48.93, the day after he unveiled financing for the deal. He has indicate

[bucolic_frolic]

1. My take is TWTR is in trouble either way, from competition

Free speech is not its problem. Niche social media is. TWTR has become a platform for the intelligentsia. If you are nobody there is little reason to be there other than to follow elites, and watching them pour out their souls every week is a tired record.

[ProfessorGAC]

2. Why?

I don't see the business win involved here.
It's obvious they see Musk as a threat, so what's the benefit to current management to open the door for him?
Another price boost for an already overvalued stock? Their market cap is already 7x revenue & more than 60x net income.

[Spider Jerusalem]

3. Tesla's market cap is over 50x revenue and 400x net income, speaking of overvalued

Market cap of a trillion on revenues of $17.7B and net income of $2.3B (figures for 2021). The Facebook board may look at that and see dollarsigns; I look at it and see a house of cards waiting for a bit of wind to make it collapse.

[kimbutgar]

4. There is a guy running for the California senate and his goal is to go after Musk

A California tech billionaire who has focused his longshot U.S. Senate campaign on technology safety is running ads in Maine arguing Tesla's self-driving cars are unsafe.

Dan O'Dowd, a software company founder, launched a Senate bid in his home state this week. He is running as a Democrat in the state's nonpartisan primary but faces steep odds of being elected as incumbent Sen. Alex Padilla, a Democrat, remains the heavy favorite.


https://news.yahoo.com/billionaire-california-senate-candidate-runs-000100056.html

Musk also though hostile takeover took over Tesla. The guy is evil. Wouldn’t buy a Tesla car if I could afford it. When it gets a flat tire or breaks down you can’t even get Triple AAA to tow the car.
and I saw the other day a Tesla that was driving erratic where I live and saw the driver was using the self driving mode while he was texting on his cell phone.

I will delete my Twitter account and app if he buys it. And you know he’ll let TFG back on to spew his lying venom.

[ProfessorGAC]

5. No Argument Here

Tesla is on the Mount Rushmore of overvalued. They didn't even turn a profit for the first time until 2 years ago. And that profit was around 4% of revenues.
If investors are betting on potential, they're on a curve to reach the potential in 2045.