It would be a mistake to discount the World’s Richest Man and his intentions to purchase Twitter and take it private.
Admittedly, Elon Musk is a bit of a Twitter troll, which could make it more difficult to absorb the enormity of what the Tesla CEO is attempting to accomplish. The American public has never had the benefit of observing the behind-the-scenes wheeling and dealing that’s required of such a massive business acquisition — not to mention Musk’s humorous, flamboyant approach.
However, by attempting to purchase Twitter and transform it into a private company, Musk is sending a clear message to not only big Tech but Deep State actors within the U.S. federal government as well.
The message is this: You will not intrude into the private sector and weaponize powerful social media technology against the people you claim to represent. That’s just not how democracy works.
Fortunately for us, Musk has real intentions of restoring unmitigated free speech to online social media spaces. And he has the cash to back it up.
After Twitter’s giant board of directors rejected Elon’s previous offer, the spacey billionaire is now taking a different approach.
Musk is now considering whether to attempt to purchase Twitter in a tender offer after he secured billions upon billions of dollars in financing.
His intentions were detailed in an updated filing with the Securities and Exchange Commission Thursday. The filing said that Musk is exploring a tender offer to acquire all outstanding shares of the stock at $54.20 per share in cash.
Further, Musk claims to have secured $46.5 billion in financing for the massive deal.
A tender offer is when an interested party appeals directly to shareholders to purchase all or some of a company. After Twitter’s board failed to respond to Musk’s initial offer, administering a “private pill” instead, the Tesla CEO had to take a different approach.
The poison pill strategy is utilized to prevent a company’s hostile takeover. It frees up a company’s board to allow them to purchase a higher percentage of shares should an investor decide to purchase a majority stake, which is precisely what Musk accomplished.
Musk began trolling on Twitter after the poison pill was administered.
Last weekend, he cryptically tweeted “Love me tender” accompanied by music notes in reference to both a 1956 hit song by Elvis Presley and the tender offer he plans to give Twitter shareholders.
🎶 Love Me Tender 🎶
— Elon Musk (@elonmusk) April 16, 2022
In another tweet, Musk references the 1934 novel by F. Scott Fitzgerald titled Tender Is The Night — another cryptic hint at his potential tender offer.
Meanwhile, Twitter’s board could be in violation of federal law for refusing Musk’s initial $43 billion.
The offer was a 38% premium over the closing price on the day before news broke that Musk had bought up 9.6% of the company and an 18% increase from the closing price before the purchase was announced.
In other words, board members have acted in direct defiance of shareholders’ best interest by refusing Musk’s initial offer.
The world is excited to see how this plays out!
Author: Elizebeth Tierney