• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
Tuesday, May 13, 2025
  • Login
  • Register
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home Business

Elon Musk’s hostile takeover plan for Twitter: Everything you need to know

by Mehardeep Singh
April 15, 2022
in Business, Exclusive Interview, Internet of Things, Markets, News, Popular, Trending, World
Reading Time: 5 mins read
0
Twitter
TwitterWhatsappLinkedin
Twitter
Source: Kim Komando

In the corporate sector, a hostile takeover bid usually is known to denote a situation wherein a company is said to attempt acquisition of another company against the wishes of the management of the targeted firm.

You might also like

Trump-Appointed Officials Denied Entry to U.S. Copyright Office Amid Leadership Shake-Up

Qatar’s $400 Million Jet Gift to U.S. for Trump’s Use as Air Force One Raises Eyebrows

Lehigh County Halts New Tesla Investments Over Musk’s Political Focus and Company Decline

Having said that, billionaire entrepreneur and the CEO of Tesla, Elon Musk has recently offered to take over the microblogging site, Twitter in a deal that is known to be valued at around 43 billion dollars, lambasting the management of the said company and saying that, he’s the person who can manage to unlock the ‘extraordinary potential’ of a communication platform which is used by more than 200 million people on a daily basis. 

Before moving any further, though all of you are very well aware of what exactly Twitter is and what it does, but for some others, as mentioned, Twitter is simply an American microblogging as well as social networking service on which users can easily interact and post messages, commonly referred to as ‘tweets’. Moreover, registered users can simply like, post as well as retweet the tweets they like. On the other hand, unregistered users can only read those tweets which are publicly available.

Coming back to the topic, the world’s richest person said, for each share, he’ll be willing to pay nearly 54.20 dollars in cash, which is about 38 percent above the known price as of April 1, which is also the last trading day before Musk went public with his stake. On a similar note, the shares of Twitter were changed a little to about 45.81 dollars in New York on Thursday, a sign which depicts skepticism that one of the platform’s most outspoken users and celebrities will manage to succeed in his so-called takeover attempt. 

Twitter
Source: Mint

In addition to this, it is also probably worth noting that, Elon Musk’s 43 billion dollar cash takeover offer came days after a regulatory filing had revealed that the billionaire owned a nearly 9.2 percent stake in the company. As talked about earlier, Musk made the said bid on Wednesday in a letter to the board of Twitter, and the same was made public in a regulatory filing on Thursday. 

Furthermore, in a TED Talk in Vancouver when asked about his bid, Musk, the second-largest shareholder of Twitter said, “I think it’s very important for there to be an inclusive arena for free speech”. This is when, Musk actually hinted at the possibility of a hostile bid in which he would do nothing but bypass Twitter’s board and simply put the offer directly to its shareholders, tweeting: “It would be utterly indefensible not to put this offer to a shareholder vote.”

As talked about at the beginning of this article, a hostile takeover bid is simply an acquisition of a company against the so-called wishes of the management of the targeted firm. Now, a hostile takeover can be achieved in one of two ways. Either the acquiring company can directly go to the shareholders of the target firm or the acquiring company can battle it out to just replace the management of the targeted firm. 

Not just that, you should be aware of the fact, the proposed deal was announced by Musk to the U.S. Securities and Exchange Commission on Thursday, just after turning down a great chance of taking over a board seat at the company. 

Elon Musk
Source: SlashGear

Moreover, since Elon Musk is one of the largest individual investors on Twitter, Tesla shares are known to fall to about 3 percent on a concern that the so-called attempt to acquire the said company would be a huge distraction for Musk. Speaking of the proposal, Twitter said that, its board would first review the proposal sent by Musk and any response would be in the best interest of ‘ all Twitter shareholders”.

However, it is said that the board, which was set to meet in order to evaluate the proposal early Thursday, sees the announced takeover offer as unwelcome and will probably fight it, the information reported, citing a person who is much more familiar with the matter!

Know that, after Musk was said to join the 11-member Twitter board, the news managed to increase Twitter’s stock by more than 20 percent, which is huge but things fell through in four days. Having said that, Twitter CEO Parag Agrawal said in a public statement, ‘Musk had backed out, but as one of the platform’s largest shareholders, his input would matter.’

Other than this, despite the Tesla billionaire’s grand takeover bid, which he claims to be his best and final offer, the initial reaction from Wall Street analysts was simply mixed, with some remaining skeptical about whether or not Twitter would actually accept the said offer, while some others still say that, Musk would not stop until and unless he owns a 100 percent of the company. 

Twitter
Source: The Indian Express

Not just that, according to a report by the Financial Times, Mirabaud analyst Neil Campling recently told that, this could just be another publicity stunt or a diversion tactic, as Muks could be just distracting attention from other major key issues such as the closing of Tesla’s factory in China. 

As mentioned previously, after announcing his stake, Musk immediately began to appeal the fellow users about prospective moves, from turning twitter’s San Francisco headquarters into simply a homeless shelter and adding an edit button for the Tweets they publish along with granting automatic verification marks to premium users. 

Even a tweet suggested that, Twitter might be dying, given that several celebrities with a large number of followers rarely tweet anymore! All in all, unsatisfied with the overall influence that comes with being Twitter’s largest investor, he has now launched a full takeover, being one of the very few individuals who can afford it outright. 

For reference, he is currently known to be worth about 260 billion dollars as per the Bloomberg Billionaires Index. Although Musk is known to be the world’s richest person, how will he find 43 billion dollars worth of cash has yet to be revealed!

What might happen?

Elon
Source: El Comercio Perú

According to reports, Twitter will be evaluating the said offer with the guidance of Goldman Sachs along with Wilson Sonsini Goodrich. Also, the company is said to be preparing a poison pill of sorts as nothing but a protective measure against Musk raising his stake as early as Friday, Reuters reported. 

In addition to this, Musk’s move has also managed to raise the question of whether or not other bidders would emerge for Twitter. Covered in a report by Reuters, Wedbush Securities analyst Daniel Ives wrote in a client note that, “It would be hard for any other bidders/consortium to emerge and the Twitter board will be forced likely to accept this bid and/or run an active process to sell Twitter,”

Moreover, Musk is known to have admitted at a conference that the success is not assured but his intent would be to retain as many shareholders as allowed by law in a private company. Also, when asked, if there was a ‘plan B’ considering if Twitter rejected the said offer, Musk told the audience without elaborating that, ‘There is. 

Reading so far, you must have understood by now as to what exactly is this hostile takeover that Elon Musk is planning for the global communication platform, Twitter and by now you must be able to analyze the situation on your own.  

In conclusion, what are your thoughts on Elon Musk’s hostile takeover plan for Twitter? Do let us know in the comments area below. To know more about such reports, do check out other articles we have on our website. Thank you for your time & if you found our content informative, do share it with your investor friends!

Also read: How does Ola make money? Ola’s business model explained!

 

  

 

Tags: Elon Muskhostile takeovertwitterTwitter's acquisition
Tweet54SendShare15
Previous Post

Software Engineer from Kolhapur Wins Apple ‘Shot on iPhone’ Competition

Next Post

Apple announces massive price drop for iPhone SE 3, iPhone 12, and iPhone 13

Mehardeep Singh

Recommended For You

Trump-Appointed Officials Denied Entry to U.S. Copyright Office Amid Leadership Shake-Up

by Harikrishnan A
May 13, 2025
0
Trump-Appointed Officials Denied Entry to U.S. Copyright Office Amid Leadership Shake-Up

A pair of unexpected visitors claiming to be newly appointed Trump administration officials caused confusion at the U.S. Copyright Office this week. The incident follows a wave of...

Read more

Qatar’s $400 Million Jet Gift to U.S. for Trump’s Use as Air Force One Raises Eyebrows

by Harikrishnan A
May 13, 2025
0
Trump Warns Google will be “shut down” if it’s not Careful

President Donald Trump is set to receive a lavish gift from the royal family of Qatar—a Boeing 747-8 jet reportedly worth $400 million. The 13-year-old aircraft, often described...

Read more

Lehigh County Halts New Tesla Investments Over Musk’s Political Focus and Company Decline

by Harikrishnan A
May 13, 2025
0
Tesla Owner Burns Down Car and House After Plugging Directly Into Power Line

Lehigh County in eastern Pennsylvania has voted to stop purchasing new Tesla stock, citing concerns over the automaker’s declining financial performance and CEO Elon Musk’s increasingly political public...

Read more
Next Post
Apple announces massive price drop for iPhone SE 3, iPhone 12 and iPhone 13

Apple announces massive price drop for iPhone SE 3, iPhone 12, and iPhone 13

Please login to join discussion

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at [email protected]

Advertise With Us

Reach out at - [email protected]

BROWSE BY TAG

#Crypto #howto 2024 acquisition AI amazon Apple bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk Ethereum facebook flipkart funding Gaming Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT samsung Social Media SpaceX startup startups tech technology Tesla TikTok trend trending twitter US

© 2024 Techstory.in

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2024 Techstory.in

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?