Billionaire Elon Musk recently launched a to take over Twitter. Over the weekend, he posted a cryptic tweet that caused speculation about the post’s meaning. The theory is that he left a message for the social media’s stockholders “with the word ‘tender,’ a likely wink-and-nod reference to a potential tender offer,” according to Los Angeles Times.
Last week he filed a $43 billion proposal for Twitter at $54.20 a share. His offer was not solicited, it appears the entrepreneur’s tactic is a 1980s-style hostile overtake bid. Twitter’s board moved to block him.
If Musk’s new strategy is a tender offer, it is a direct appeal to investors. Assuming he can persuade them to sell their shares, then he “will amass a controlling stake in the company,” explains The Washington Post. In the event that he is unable to buy enough shares, the billionaire might pursue a proxy fight.
The Twitter board started to deliberate the offer. This will likely include hiring outside advisors — financial and legal — and creating a special committee of board members.
Musk contends Twitter should allow a vote of the company’s shareholders. He tweeted that they are the social media company’s owners, not the board of directors. However, the board does have the authority to carry out critical decisions because that is the reason they were hired by the stockholders.
🎶 Love Me Tender 🎶
— Elon Musk (@elonmusk) April 16, 2022
Written by Cathy Milne-Ware
Los Angeles Times: Elon Musk hints at tender offer to Twitter shareholders; by Michael Tobin
The Washington Post: Elon Musk has launched a raid on Twitter. Here’s what that means. By Jacob Bogage, Douglas MacMillan, and Taylor Telford
RS News: How Elon Musk keeps investors on their toes, Twitter hints at potential tender offer to shareholders
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