_______ is the Night
— Elon Musk (@elonmusk) April 20, 2022
ADDED: At the L.A. Times, Jon Healy has some good detail about what how this move would work, in "Buying Twitter is complicated. Here’s what Elon Musk faces." Excerpt:
[T]o take the company private, Musk would have to buy out the rest of the shareholders. Hostile bidders typically do this by making a “tender offer,” which gives shareholders the option to sell their stakes for a set price by a certain date.... Some shareholders might hold out and take their chances on a bigger payout later if the buyer acquires less than an overwhelming majority of the shares....
At the moment, though, he has merely told Twitter management that he would like to buy the shares for [$54.20].... And even though Musk hasn’t made a formal offer yet, Twitter’s board made its opposition clear by adopting a “shareholder rights plan,” also known as a poison pill. If Musk does make a tender offer without the board’s support, or if he buys at least 15% of Twitter’s shares, shareholders will have the right to obtain what amounts to several new shares at half price for each share they own.
The plan would force Musk to buy far more shares of the company in order to gain control, making the takeover prohibitively expensive. And it’s an effective tactic; Peer C. Fiss, the Jill and Frank Fertitta chair of business administration at USC, said he knew of no takeover that had successfully overcome a poison pill....
In effect, Fiss said, a legal battle over a poison pill boils down to an argument between the board and the buyer over which side has the better strategy for maximizing shareholder value.... Fiss said that companies often try to make corporate raiders go away quietly by paying a premium for the shares they acquired, a practice known as greenmail. But Musk has a policy agenda, Fiss said....
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38 comments:
If Musk buys Twitter, then its righteous ban of Babylon Bee is doomed.
If Babylon Bee is unleashed, then civil discourse is doomed.
Well here's hoping Elon doesn't unravel like Dick did.
Tender is the night
Given a previous tweet ("Love Me Tender"), I think Elon might have been referencing Jackson Browne, rather than Fitzgerald.
None of the Jeopardy contestants knew the title of Fitzgerald's first novel, in a show very recently. None even took a guess, so they really had no idea of it.
Lawyers in Love
I thought Billy Squire and went with "Lonely".
Elon is great on twitter.
Remember when Musk posted on twitter, he was starting new technical college in Texas?
Texas Institute of Technology and Science
A few minutes later he posted "the merch is going to be lit"
It could also mean Musk didn’t seize the day.
I sure hope Musk is able to buy you people Free Speech so there will be one less thing for you cucks to whine bitch and moan about.
Thank you Richlb. I knew there was an alternate title out there and THAT was a great riff and a kick-ass song. That whole album rocked. Squire’s might be the first career killed by one bad MTV video.
"None of the Jeopardy contestants knew the title of Fitzgerald's first novel, in a show very recently."
If you don't know the book there's always the 1961 movie and the 1983 Jackson Browne song, both available on YouTube.
Sammy Fain's title song for the movie is extremely forgettable.
Anyway, that seems to be the cycle: book -> movie -> song -> oblivion.
Amusing that an above commenter labels Musk as "buying" free speech for freedom loving masses. As the Hunter laptop saga unfolds, with the media being dragged kicking and screaming to report, it will reveal how foreign entities have bought the freedom hating Commie-Pinko liberals.
Myself? I would prefer Musk do his buying in clear view.
Big arb right now: $8.
God knows that liberal ideas can't stand up to scrutiny, so this needs to be stopped at all costs, like the Drudge Report was neutered.
English major trivia: Fitzgerald’s title comes from Keats’ Ode to a Nightingale.
Groomer Enabler Howard is clearly upset the naked Family Sex Show for 5 year olds was cancelled in England.
Not to worry Howard, there are alot more groomers just like them who still need your "passionate" support in democratical states and cities in the US.
Governor DeSantis is rattling his saber on behalf of Florida retirement fund beneficiaries, who collectively own a bunch of Twitter stock.
Declining an outside offer at a 54% premium is a clear violation of the board's fiduciary duty to shareholders. Wot, they think the company is at least 54% undervalued, so their plan is to... stay with the current management team who ran the company so as to leave it undervalued by at least? 54%
It boggles the mind.
https://thefederalistpapers.org/us/twitter-rejects-musk-offer-desantis-jumping-musk-make-twitter-offer-cant-refuse?fbclid=IwAR1mKxoAnQ3lt-JEn3eaVUYmSKSmHXeftbv7p0HJcufpYO4l5QeKnK4gJ-c
Darker is the night.
iowan2 Elon is great on twitter.
Remember when Musk posted on twitter, he was starting new technical college in Texas?
Texas Institute of Technology and Science
A few minutes later he posted "the merch is going to be lit"
Rare clumbers or GTFO.
Could also use tags for John Keats and Jackson Browne
People should be attacking the Twitter Board of Directors for screwing over this shareholders for their own personal reasons.
I wonder where David French, the Bulwark boys, and National Review Girlie-men are? The left wing board is fighting the "magic of the Free Market", yet they are silent. Even Jonah Goldberg is silent.
"In effect, Fiss said, a legal battle over a poison pill boils down to an argument between the board and the buyer over which side has the better strategy for maximizing shareholder value...."
This isn't even an argument. Musk immediately adds more value than the shareholders have seen in years. They will make good money on the buyout. In a shaky stock market, this is a no-brainer IF....fiduciary concerns were the driving force for this board. And frankly, given Twitter's history, I'd say it's not. That much seems obvious.
"But Musk has a policy agenda, Fiss said, not a financial one, adding, “He has a strong political interest in what he wants to do with Twitter.”
As does the current board. That is the entire point of this whole episode. It's 'stifle speech' vs 'release the hounds'. The winner should be the shareholders, not opinion makers.
Drago can't resist effusively gushing on and on about his Prevert fetishes, unexpectedly. Get help, Goose. If you eject too late, you might hit the horizontal stabilizer.
Twitter isn't worth $20/share, so Musk is doing the shareholders a big favor in wanting to buy them out at $54.
Elon Musk is using tweets on Twitter to advertise for financing to buy Twitter. He said he is only willing to put up $10 to $15 billion of his own money, 25% to 35% of his “best and final offer” of $43 billion. He could crowdfund the rest, with each of the 74 million people who voted for Donald Trump in 2020 ponying up $420. Otherwise, he has to find a banker.
The arb on this stock remains very large. I think Elon gets it for $54.20.
Howard said...
I sure hope Musk is able to buy you people Free Speech so there will be one less thing for you cucks to whine bitch and moan about.
Howard is opposed to free speech. News at 11.
Blogger rcocean said...
People should be attacking the Twitter Board of Directors for screwing over this shareholders for their own personal reasons.
The Twitter Board has negligible ownership of the shares. Who does ? Who are the shareholders?
Woke institutions.
Defending against a tender offer usually requires management to take some action that increases the share price. Hard to know what that could be for Twitter other than finding another buyer.
Twitter was above $70 less than a year ago. Why?
I saw on responses to this tweet. 4/20 is the night.
Poison pills should be illegal. It is none of the board's business who buys their company. Do they micromanage every stock trade? No. And if they were so concerned, why allow the Saudi prince to own so much?
Howard said...
I sure hope Musk is able to buy you people Free Speech so there will be one less thing for you cucks to whine bitch and moan about.
It isn't the fact that he realizes he is a fascist that upsets Howard.
It is the fact that he cannot defend his positions against people he thought he was smarter than that causes him to lash out like this.
You are a below average commenter here Howard.
Far below average.
I hope he does make a Tender offer, and I hope it’s less than the $54/share offer he made to the board. Then we would finally get to see the fireworks that should have already been going off. The board F’d this up and should all be sued/fired. Imagine, they could’ve gotten $54/share for each shareholder, and instead the tender offer comes in lower and the shareholders still want to take it…
For such a pathetic lowlife commenter, why does it get under you're skin?
For the record, I 100% support Musk buying Free speech for you people. I am sure his editing will be unreasonable and appropriate or safe and insane. Either way I look forward to Babylon Bee will be released to great fanfare knowing it still just as easy to skip over.
"And it’s an effective tactic; Peer C. Fiss, the Jill and Frank Fertitta chair of business administration at USC, said he knew of no takeover that had successfully overcome a poison pill...."
What an incredibly stupid comment. I think students should avoid his class.
In Canada, where our poison pill rules follow U.S. law and experience, securities commissions (primarily the OSC here) will not permit a Pill to prevent a take-over, especially a Pill adopted in the face of a bid and which looks to entrench management. The commissions want an auction to proceed. All the Pill will accomplish is extend the minimum take-over period from 21 days to approximately 60 in order to give the target's board time to find a competing bid.
At some point, the offeror (i.e. the hostile party) will apply to the securities commission to cease trade the Pill and permit the take-over to proceed. The commission will, at some point, grant that order. The Pill will be cease traded and the target shareholders will get the opportunity to tender to the offer (or not).
There is actually a crypto currency called Blank is the Night. That is probably just a coincidence, though.
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