Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by RaymondDeWitt on Thursday April 14, 2022 @01:35PM
(#31030313)
How was Musk's offer - a public disclosure with few conditions or contingencies, made in bad faith? At face value, it does not violate basic standards of honesty or appear to deliberately mislead.
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by colinmhayes on Thursday April 14, 2022 @02:01PM
(#31030748)
At face value Musk has a history of paying large SEC fines because he lied to investors.
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by memish on Friday April 15, 2022 @09:17AM
(#31039887)
From TED yesterday.
"Funding was indeed secured. I should say I do not have respect for the SEC in that situation. I don’t mean to blame everyone at the SEC, but certainly the San Francisco office. The SEC knew that funding was secured. They pursued an active public investigation, nonetheless. I was forced to concede to the SEC unlawfully."
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by colinmhayes on Friday April 15, 2022 @10:45AM
(#31040836)
I don't think him saying that makes it true. He certainly never brought Tesla private or brought a serious offer to do so.
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by jjeaff on Thursday April 14, 2022 @01:49PM
(#31030530)
It's another 420 reference just like his claim to have financing ready to take Tesla private which turned out to be false and just a joke.
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by RC_ITR on Thursday April 14, 2022 @03:41PM
(#31032266)
I implore you to do what I suggested in the parent comment.
How many times is “non-binding” said in the document?
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by mdoms on Thursday April 14, 2022 @01:50PM
(#31030540)
You mean like his offer to take Tesla private - a public disclosure with few conditions or contingencies?
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by ratsmack on Thursday April 14, 2022 @01:39PM
(#31030376)
>The bid is likely to be rejected b/c it's likely made in bad faith. Read the SEC release and count how many times it says ' non-binding'
I must assume this statement is just a personal opinion rather that an SEC ruling.
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by fallingknife on Thursday April 14, 2022 @01:38PM
(#31030358)
Any initial offer is going to be non-binding. This is standard.
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by RC_ITR on Thursday April 14, 2022 @03:42PM
(#31032290)
Yeah and any initial offer is worth the paper it’s printed on.
That is not the mainstream understanding of this “offer” though and that’s the point I’m trying to make.
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by mathlover2 on Thursday April 14, 2022 @02:41PM
(#31031408)
IIRC he claimed that this was his only offer and that he would sell if it was refused.
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by mathlover2 on Thursday April 14, 2022 @02:55PM
(#31031608)
> Mr. Musk called the bid his “best and final offer,” adding that if his proposal isn’t accepted “I would need to reconsider my position as a shareholder.” Mr. Musk earlier this year built a position of more than 9% in Twitter.
Source: https://www.wsj.com/articles/elon-musk-offers-to-buy-rest-of...
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by dheera on Thursday April 14, 2022 @05:56PM
(#31033805)
He could sell it for higher? People would probably buy the shares at higher price if they knew it came from Elon.
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by jonovate on Thursday April 14, 2022 @06:57PM
(#31034499)
No, that's not how it works :).
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by lupire on Thursday April 14, 2022 @08:53PM
(#31035461)
That is how Elon fandom works. He could sell paper shares at a premium.
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by lupire on Thursday April 14, 2022 @08:52PM
(#31035456)
> This can mean that it will decline less than cash (i.e. inflation)
This is meaningless because stock price is denominated in dollars. Inflation expectation means that the stock price is going up; that is, be worth more in dollars. Anyone choosing to hold a stock prefers that stock more than the dollar price it would fetch. Otherwise they would sell.
Re:Elon Musk makes $43B unsolicited bid to take Twitter private
by cjensen on Thursday April 14, 2022 @01:46PM
(#31030468)
Holding a volatile and risky asset implies that the holder thinks there is a significant win available to offset the costs of the risks. It's reasonable to assume that projected price is far above market.
This is not exactly true. Everyone holding Twitter believes that it will outperform the next best available asset. This can mean that it will decline less than cash (i.e. inflation) and decline less than other stocks. In our current market, this means people believe that Twitter has a good forward looking IRR, but it does not mean that all holders believe that the stock price should be $70.
>To make a successful hostile bid, you need to pay not just "more than the current price", but "more than the holders of 50% of current shares believe the company to be worth".
Again, this comes back to IRR terms. Sure Twitter may be worth $100/share ten years from now, but most people would take $50 today than $100 then.
>This is what makes it so difficult, and why this bid is very likely to be rejected.
The bid is likely to be rejected b/c it's likely made in bad faith. Read the SEC release and count how many times it says ' non-binding'