[ad_1]
If you happen to’re having bother maintaining with the ever-changing Elon Musk-Twitter takeover bid state of affairs, you’re not alone. Plus, the confusion round what occurred and when is comprehensible, for the reason that drama seems to have near-daily developments. So as a substitute of clicking by means of hashtags on Twitter to seek out out what’s actually occurring, allow us to enable you.
Our neat little timeline under outlines all the primary bullet factors it is advisable to know to make sense of this social media Succession-like state of affairs.
Musk begins shopping for up Twitter shares in batches “virtually every day”
January 31, 2022: Whereas this story appears to have began in April, its beginnings actually lie again in January of this yr. The Associated Press reports that regulatory filings showed that the Tesla CEO began buying Twitter shares on January 31 on an “almost daily” basis.
Though few took notice, it’s clear Musk had an early interest in building up stake in Twitter.
Musk announces 9% stake in Twitter
April 4, 2022: All those shares Musk bought eventually added up to him having a 9% stake in Twitter. This stake was reported on April 4 in a regulatory filing. This is the point at which the story becomes public, because at the time, that 9% stake made Musk the bird app’s biggest shareholder. But keep reading, because that doesn’t last long.
It was also on this day that Musk put a poll on Twitter, asking his followers in the event that they needed an edit button.
Would you like an edit button?
— Elon Musk (@elonmusk) April 5, 2022
Twitter gives him a seat on its board
April 5 2022: Not lengthy after Musk’s 9% stake within the firm is introduced, Twitter gives him a seat on its board. Twitter CEO Parag Agrawal proclaims Musk’s appointment to the board via a tweet on April 5.
The board seat provide got here with a stipulation that Musk wouldn’t buy greater than 14.9% of Twitter’s remaining inventory. Musk initially accepted this provide, saying he was wanting ahead to working with the workforce “to make important enhancements to Twitter.”
I’m excited to share that we’re appointing @elonmusk to our board! By way of conversations with Elon in latest weeks, it grew to become clear to us that he would deliver nice worth to our Board.
— Parag Agrawal (@paraga) April 5, 2022
Vanguard Group reveals its bigger stake
Musk declines board seat offer
April 10, 2022: The next day, Agrawal announces via a tweet that Musk had declined to hitch Twitter’s board. It was unclear initially why Musk selected to not be part of, nevertheless it appears his better intentions have been nonetheless within the works.
Elon has determined to not be part of our board. I despatched a quick observe to the corporate, sharing with you all right here. pic.twitter.com/lfrXACavvk
— Parag Agrawal (@paraga) April 11, 2022
Twitter investor information a lawsuit towards Musk
April 12, 2022: Twitter investor Marc Bain Rasella filed a lawsuit against Musk in a New York federal court. The lawsuit alleges the following:
- That Musk may have failed to report his Twitter share purchases to the Securities and Exchange Commission (SEC) on time (within 10 days), and that, because of that, investors who sold their shares and were unaware of Musk’s purchase potentially missed out on gains they could have gotten when his purchase became public on April 4, as the share value increased quite a bit then.
- It’s also alleged that his delay to disclose his stock purchase resulted in Musk saving $143 million at that time while buying Twitter stock at a lower price.
Musk offers to buy Twitter for $43 billion
April 14, 2022: On April 14, Musk tweets that he made an offer to buy Twitter. The offer is for $43 billion, and Musk wishes to take the company private. Specifically, he wants to buy Twitter at $54.20 per share — that is his “best and final offer.”
According to a letter included within the SEC filing for the bid to buy Twitter, if the offer is not accepted, Musk said: “I would need to reconsider my position as a shareholder.”
I made an offer https://t.co/VvreuPMeLu
— Elon Musk (@elonmusk) April 14, 2022
Twitter inventory falls as Musk proclaims bid to purchase Twitter
April 14, 2022: Not lengthy after Musk’s Twitter takeover bid was introduced, Twitter’s inventory fell.
Twitter’s board of directors mounts a “poison pill” strategy against Musk’s takeover bid
According to Investopedia, there are different kinds of poison pill strategies, and the one we’ve just described (where you let all current shareholders buy discounted shares, except for the investor who’s trying to take over) is known as a “flip-in poison pill.” This strategy eventually results in the takeover becoming increasingly cost-prohibitive for the investor who wants to take over.
Twitter’s poison pill strategy is expected to kick in if Musk’s stake in Twitter increases to 15% or higher.
This story is still in progress. We will continue to update this article has more information comes out.
Editors’ Recommendations
[ad_2]
Source link