Isn’t that just an LBO? Most large deals are financed in some way or involve swapping shares, so I don’t see the big deal. I don’t get people saying Musk cannot do the deal due to cash on hand. I think the guy is a bit nuts and is wrong in his interpretation of “free speech”, vis-à-vis Twitter. But to say a deal absolutely cannot be done I’m not sure I agree with. It’s just a matter of if it’s a good idea or not. He could use Tesla by either leveraging his stake, or actually using the company in a merger acquisition to make it happen as he did with Space-X.
It would be if he was looking to actually get this thing accepted by Tesla stockholders and then get them shares of Twitter. Instead, he is risking his shares (and the stock price) of Tesla to take a company private himself. A company that doesn't make money.
Looks like the poison pill isn't working. Gee who could've ever seen that coming? Oh, that's right I did. Musk has secured funding and the WSJ is reporting the two sides are discussing the finer details of the transaction that could close this week. Twitter now has to offer an alternative or another bid. Like I said before, Musk has already won. Thanks for coming out. Elon Musk’s Twitter Buyout Offer Is Turning More Serious
Like I said on April 14th.............My chips are all on Musk. He will find all the capital he needs to buy Twitter.
Well, the last 24 hours have certainly proven that the Twitter board 1) has no long term growth plans for the platform (and the resulting share price), and 2) fears that Musk's stock dump subsequent to a failed hostile takeover will crater the shares now that he owns almost 10% of the company. We'll find out in the long term if Musk is the proper shepherd for Twitter but the last few weeks has certainly proven (again) that Twitter's board is incompetent.
Twitter’s stock was falling before Musk made his announcement. Twitter was in a terrible spot. This outcome was inevitable....Musk knew that before he made the offer.
Yup. Because the board let Dorsey be a part time CEO for years while he also ran Square, and the platform has evolved horribly.
Yep, looking like he was willing to risk his Tesla shares to make this happen. That surprises me. It is dumb money unless he has a way to make money on this (he is risking his shares in a profitable company to buy an unprofitable company at a large premium over it's likely overpriced stock). I am surprised he is wasting his money like that. But yep, I missed on that one. But as I said, I don't even have a Twitter account nor direct ownership in their shares, so my interest isn't too high.
He secured his loans by providing Tesla stock as collateral. He needs to pay that loan back somehow or they will take his Tesla stock to make up the difference. I'm not sure how he is going to pay back that loan unless he figures out a way to monetize Twitter, which nobody has really done yet.
lost money but perhaps he doesn't care. he will just get a new compensation package that grants him that many new shares
Yeah, it will be interesting to see how much Tesla's shareholders are willing to fund this. Especially if the banks take a chunk of the company. Clearly, Musk has done a good job leading the company, but there probably is a limit on how much they will let him play with the stock to fund something that doesn't benefit them in any way.
He is, and they are his shares. The question would be whether they would be willing to cover his losses if he isn't able to make Twitter highly profitable (which is what he will need to pay even the interest on his loans). In theory, they shouldn't, but his continued ownership does raise questions as to whether they would serve as a bit of a piggy bank.
