Musk taking over Twitter?
Elon Musk made a surprise substantial investment in Twitter with a 9.2 per cent stake. The news alone sent $Twitter (Delisted)(TWTR.US$ Twitter share price up by 27% in a day.
This is raising speculation that Musk may be looking to take over the company since he openly said he was 'giving serious thought' about building a new social media platform a week ago. Buying Twitter would be easier with a ready user base than to start from scratch (like Trump's Truth Social).
Musk has been critical of Twitter - accusing it for not facilitating free speech, which he believes is 'essential to a functioning democracy'. This probably stemmed from his brushes with the SEC for making wild statements about taking Tesla private and amongst other clashes.
Twitter is a suitable social media target for Musk since he has a big Twitter following - among the top 10 in the world. Twitter is also much cheaper than Facebook. Moreover Twitter is witty platform where a genius geek like Musk can find affinity in.
Everyone is guessing his next move - will he eventually up his stake and mount a hostile takeover? With just a 9.2% stake, Musk is already the largest shareholder. The next largest shareholder is Vanguard with 8.8%. Jack Dorsey only has a 2.25% ownership.
Musk does not need to own more of Twitter to effect changes he want to see. Maybe the first step is to get the management to take notice and that Musk meant business. He might be able to get what he wants should the management acquiesce to his requests.
If the management is repulsive to Musk, he can bring on a proxy fight to remove the current board of directors and vote himself or his allies onto Twitter's board. He would have more power to influence things from the inside. Given Musk's cult-like followers, he will have no problem getting the support and votes to win this proxy fight.
I don't think Musk would want to own more of Twitter because it wasn't about the money but for the principle he was after. Getting more stake is unnecessary when he can already have the power to change and influence Twitter.
Only time will tell what Musk's next move will be. In the meantime, Twitter shareholders are enjoying a SpaceX lift and enjoy it while it lasts.
This is raising speculation that Musk may be looking to take over the company since he openly said he was 'giving serious thought' about building a new social media platform a week ago. Buying Twitter would be easier with a ready user base than to start from scratch (like Trump's Truth Social).
Musk has been critical of Twitter - accusing it for not facilitating free speech, which he believes is 'essential to a functioning democracy'. This probably stemmed from his brushes with the SEC for making wild statements about taking Tesla private and amongst other clashes.
Twitter is a suitable social media target for Musk since he has a big Twitter following - among the top 10 in the world. Twitter is also much cheaper than Facebook. Moreover Twitter is witty platform where a genius geek like Musk can find affinity in.
Everyone is guessing his next move - will he eventually up his stake and mount a hostile takeover? With just a 9.2% stake, Musk is already the largest shareholder. The next largest shareholder is Vanguard with 8.8%. Jack Dorsey only has a 2.25% ownership.
Musk does not need to own more of Twitter to effect changes he want to see. Maybe the first step is to get the management to take notice and that Musk meant business. He might be able to get what he wants should the management acquiesce to his requests.
If the management is repulsive to Musk, he can bring on a proxy fight to remove the current board of directors and vote himself or his allies onto Twitter's board. He would have more power to influence things from the inside. Given Musk's cult-like followers, he will have no problem getting the support and votes to win this proxy fight.
I don't think Musk would want to own more of Twitter because it wasn't about the money but for the principle he was after. Getting more stake is unnecessary when he can already have the power to change and influence Twitter.
Only time will tell what Musk's next move will be. In the meantime, Twitter shareholders are enjoying a SpaceX lift and enjoy it while it lasts.
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Venture118 : Immediate impact !!! Can imagine the attractiveness of $Twitter (Delisted) (TWTR.US)$Right away... .
lightfoot : I really don't care. I don't subscribe to public non sense. I travel my own path and use my education and skills GOD gave me. Amen. I do like Elon.
GM 1 Venture118: The power of Musk!!!
Johnnie Worker : This is damn impressive dude
Venture118 : $60 within sight
