Musk announces funding secured for Twitter buy

Re:Musk announces funding secured for Twitter buy by mannykannot on Thursday April 21, 2022 @10:40AM (#31110038)

As described above, it would be like a stock dividend or split (except for the 15%) - no income, no capital gains, no dilution.

In reality, this poison pill is more complicated - from Matt Levine: "The main mechanism of the pill is that if Musk or anyone else acquires more than 15% of Twitter's stock, then every other Twitter shareholder will have the right to pay $210 to acquire $420 worth of Twitter stock (at then-current market prices)."

He also points out that this is moot except in the highly unlikely event that it is triggered - in which case, someone screwed up really badly.

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Re:Musk announces funding secured for Twitter buy by 988747 on Thursday April 21, 2022 @11:12AM (#31110483)

So the discount for existing shareholders is only 50%? That still requires pretty significant investment from their side, what if they can't come up with enough money? Poison pill becomes uneffective, right?

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Re:Musk announces funding secured for Twitter buy by danso on Thursday April 21, 2022 @11:44AM (#31110966)

Why wouldn't existing shareholders buy heavily discounted stock, knowing that there's a good chance Musk will go all in and pay a premium for it?

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Re:Musk announces funding secured for Twitter buy by elcomet on Thursday April 21, 2022 @12:16PM (#31111418)

Maybe because they do not have the money, and because it's not certain that musk will go all in.

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