Elon Musk has offered to buy Twitter for $54.20 per share, an offer that values the company at $43.4 billion.
The move caps a dramatic few days in which the Tesla boss announced he had taken a 9% stake in the company to become its largest shareholder, but then declined an invitation to join the board.
Musk seems genuinely passionate about the future of Twitter. He has a lot to say about where it wants to go, and over the past few weeks has tweeted a slew of suggestions about changes the company should make. He’s an avid user and free speech advocate who argues that the company is too insistent on moderating content.
But he can afford to buy the company It might be difficult to get the money. His personal fortune is estimated at over $200 billion, but that’s mostly tied up in Tesla stock and his ownership of SpaceX, a private company.
And Musk also has a history of not following through. In 2018, he took to Twitter to announce his Intentions to take Tesla private. The proposal was abandoned a few weeks later after discussions with shareholders. His tweet was found to violate US securities laws, resulting in Musk’s social media post about the electric car company requiring pre-approval by attorneys.
It also begs the question of where Twitter would fit into its broader portfolio. Musk has previously been accused of stretching too thin – and some might see it as a vanity project for a disgruntled tweeter advance its own agenda.
In a letter He leaves room for a quick exit strategy on Twitter’s board of directors, which is attached to the filing he has filed with the US Securities and Exchange Commission.
“If the deal doesn’t work out, as I have no confidence in management nor believe I can drive the necessary changes in the public market, I would have to reconsider my position as a shareholder,” Musk wrote.
That comment is also a scathing verdict on Twitter CEO Parag Agrawal’s leadership, a verdict that came after weeks of talks between him and Musk about joining the company’s board.
That same board must now decide whether the price Musk is offering is reasonable and whether a takeover by a man unpopular with Twitter’s own employees is in the best interests of the company and all shareholders.
Musk’s offer could represent a 54 percent premium to Twitter’s stock in January, when he quietly began buying up shares in the company, but Twitter shares before peaked at $77 Early 2021. The board may cite this as reason for rejecting the sale, but will activist shareholders like Elliott Management decide that the sale is now an offer too good to refuse?
The Internet of (Six) Things
1. House flipping algorithms are coming to your neighborhood
If you thought it was hard enough getting up the apartment ladder when bidding against other people, you better hope no iBuyer shows up in your town. Zillow’s “buy it now” business may have collapsed, but here’s why it’s just a stumbling block in the way Tech companies looking to disrupt the real estate market.
2. Amazon slaps a premium on US sellers to offset inflation and fuel costs
Third party suppliers on Amazon who use the company’s fulfillment network, Fulfillment by Amazon, to deliver products must: a 5% surcharge on all deliveries. Amazon attributed the rise to rising fuel costs and inflation.
3. Prepare for Armageddon: Ukraine’s tactics against Russian hackers
Why wasn’t Ukraine hit harder? cyber attacks? Maybe because it’s well prepared. One example is a small and inconsistent Ukrainian team monitoring one of Russia’s most prolific hacking groups – Armageddon – to learn their signature moves.
4. After a year, Meta’s civil rights team still needs a win
Roy Austin Jr. is Vice President of Civil Rights and Deputy General Counsel at Facebook. If he can prove that his team can do it more than incremental changes within metathey could offer a model that the rest of Silicon Valley could follow.
5. The torturous journey of Toshiba’s journey to the auction
It was supposed to be Japan’s most significant take-private deal in history, however internal resistance complicated things considerably.
6. A day in the life of (almost) all vending machines in the world
The vending industry has come a long way from its humble beginnings in Wakefield, England.
Tech Tools – Vespa Elettrica
The meteoric rise of the electric bike is now seeping into consumer mopeds: zero-emission bikes for riders looking to avoid the gas pumps and congestion charges. Wired tested several here, including the Vespa Elettrica, “which feels like a normal Vespa in the best possible way”. The design is in line with the brand’s classic Primavera model, but it doesn’t have the noise that emanates from a petrol engine.
Correction: Microsoft 365 was incorrectly referred to as Windows 365 in the previous issue of this newsletter. Excuse.
#techFT takes an Easter break and returns on Tuesday.
Elon Musk bids for Twitter: what happens next? Source link Elon Musk bids for Twitter: what happens next?