Musk and Twitter: the timeline

Finally, belatedly, Elon Musk spat the appropriate form and we have a clearer view of his Twitter special operation.

The Tesla CEO had previously taken advantage of the SEC’s abbreviated filing regime and filed a Schedule 13G, pledging not to change or affect control of the issuer. Given Musk’s regular lobbying of his 80.7 million Twitter followers for changes to Twitter user interface and or Managementthe use of a 13G seemed questionable.

Likewise times. RecallElon’s Schedule 13G landed on April 4 showing a 9.2 percent share, along with an event date for March 14 when filing became required. A lot of it didn’t make sense, including the seemingly ignored 10-day timely filing requirement and the improbability of exceeding the >5 percent disclosure threshold that far in a single day.

Causes all of this consternation among those whose options expired in the Musk window could revealed his interest (when Twitter shares were below $40) and when his 13G form landed (after which they traded around $50). It also begs the question of whether Musk’s knowledge – we suspect! – That he was a Twitter shareholder amounts to significant non-public information. Exceeding the disclosure deadline could theoretically allow him to further increase his Twitter share at cheaper rates than if his interest were public.

Board members cannot reasonably claim to have no influence over the companies they run, so Musk’s appointment on Tuesday required a new, more accurate filing. Here it is with a cumulative holdings column added:

Some sights to be aware of are:

January 31, 2022: Musk’s initial investment in Twitter is just over 620,000 shares at just under $36.83. Musk most harsh criticism in recent times from Twitter had come ten days earlier, triggered by the introduction of NFT profile pictures. His culture war of choice that day was the Joe Rogan Spotify Thing.

March 14, 2022: Musk’s Twitter share exceeds the 5 percent threshold, meaning disclosure would typically be required within 10 days.

March 24, 2022: Musk, now an undisclosed 7.5 percent Twitter shareholder, took to Twitter to raise concerns about the “De facto bias” and surveys Twitter users whether the Twitter algorithm should be open source. He buys more than 1.9 million shares that day.

March 25, 2022: Musk asks his followers if Twitter “strictly adheres to‘ on the principle of free speech, while buying another nearly 3.5 million shares to increase his undisclosed stake to 7.9 percent. He pays an average of $38.20 per share.

March 28, 2022: Musk increases his undisclosed stake to 8.3 percent with the purchase of an additional 2.6 million shares at $38.77 each, a day after tweeting that he “to think seriously‘ to build a new anti-censorship social media platform.

April 4, 2022: Musk announces in a regulatory filing that he is a 9.2 percent Twitter shareholder. Twitter shares closed at $49.97 on the day. Musk’s average purchase price over 44 trades is $35.89. Beginning with the apparent disclosure deadline of March 24, 2022, he purchased more than 46 million shares at an average price of $35.94, approximately 28 percent below the prevailing price after his share purchase was announced.

April 5, 2022: musk joins the board of directors of Twitter.

April 6, 2022: Musk’s 13D filing shows he held 73,115,038 Twitter shares as of April 4. Curiously, this is 371,900 fewer than the total published by Musk 13G filing of April 4, which had a inventory of 73,486,938.

Could that mean he’s already sold some? We should find out in ten days, but maybe we won’t.

Musk and Twitter: the timeline Source link Musk and Twitter: the timeline

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