If you happen to’re having bother maintaining with the ever-changing Elon Musk-Twitter takeover bid scenario, you’re not alone. Plus, the confusion round what occurred and when is comprehensible, because the drama seems to have near-daily developments. So as an alternative of clicking via hashtags on Twitter to seek out out what’s actually occurring, allow us to make it easier to.
Our neat little timeline under outlines all the principle bullet factors you might want to know to make sense of this social media Succession-like scenario.
Musk begins shopping for up Twitter shares in batches “nearly each day”
January 31, 2022: Whereas this story appears to have began in April, its beginnings actually lie again in January of this yr. The Associated Press reports that regulatory filings confirmed that the Tesla CEO started shopping for Twitter shares on January 31 on an “nearly each day” foundation.
Although few took discover, it’s clear Musk had an early curiosity in build up stake in Twitter.
Musk proclaims 9% stake in Twitter
April 4, 2022: All these shares Musk purchased finally added as much as him having a 9% stake in Twitter. This stake was reported on April 4 in a regulatory submitting. That is the purpose at which the story turns into public, as a result of on the time, that 9% stake made Musk the fowl app’s greatest shareholder. However maintain studying, as a result of that doesn’t final lengthy.
It was additionally on at the present time that Musk put a poll on Twitter, asking his followers in the event that they wished an edit button.
Would you like an edit button?
— Elon Musk (@elonmusk) April 5, 2022
Twitter presents him a seat on its board
April 5 2022: Not lengthy after Musk’s 9% stake within the firm is introduced, Twitter presents him a seat on its board. Twitter CEO Parag Agrawal proclaims Musk’s appointment to the board via a tweet on April 5.
The board seat supply got here with a stipulation that Musk wouldn’t buy greater than 14.9% of Twitter’s remaining inventory. Musk initially accepted this supply, saying he was trying ahead to working with the workforce “to make vital enhancements to Twitter.”
I’m excited to share that we’re appointing @elonmusk to our board! By means of conversations with Elon in current weeks, it grew to become clear to us that he would deliver nice worth to our Board.
— Parag Agrawal (@paraga) April 5, 2022
Vanguard Group reveals its bigger stake
April 8, 2022: Regulatory filings showed that asset-manager Vanguard Group reported on April 8 that it really has a ten.3% stake in Twitter, which implies Musk isn’t the largest shareholder anymore.
Musk declines board seat supply
April 9, 2022: Musk declines Twitter’s board seat supply. He was really imagined to formally be a part of the board that day, however as an alternative selected to not be a part of that morning, in accordance with Twitter’s CEO.
April 10, 2022: The following day, Agrawal announces via a tweet that Musk had declined to affix Twitter’s board. It was unclear initially why Musk selected to not be a part of, nevertheless it appears his better intentions had been nonetheless within the works.
Elon has determined to not be a part of our board. I despatched a short observe to the corporate, sharing with you all right here. pic.twitter.com/lfrXACavvk
— Parag Agrawal (@paraga) April 11, 2022
Twitter investor recordsdata a lawsuit towards Musk
April 12, 2022: Twitter investor Marc Bain Rasella filed a lawsuit towards Musk in a New York federal court docket. The lawsuit alleges the next:
- That Musk might have did not report his Twitter share purchases to the Securities and Trade Fee (SEC) on time (inside 10 days), and that, due to that, buyers who bought their shares and had been unaware of Musk’s buy doubtlessly missed out on beneficial properties they might have gotten when his buy grew to become public on April 4, because the share worth elevated fairly a bit then.
- It’s additionally alleged that his delay to reveal his inventory buy resulted in Musk saving $143 million at the moment whereas shopping for Twitter inventory at a cheaper price.
Musk presents to purchase Twitter for $43 billion
April 14, 2022: On April 14, Musk tweets that he made a proposal to purchase Twitter. The supply is for $43 billion, and Musk needs to take the corporate personal. Particularly, he desires to purchase Twitter at $54.20 per share — that’s his “finest and last supply.”
According to a letter included throughout the SEC submitting for the bid to purchase Twitter, if the supply is just not accepted, Musk mentioned: “I would want to rethink my place as a shareholder.”
I made a proposal https://t.co/VvreuPMeLu
— Elon Musk (@elonmusk) April 14, 2022
Twitter inventory falls as Musk proclaims bid to purchase Twitter
April 14, 2022: Not lengthy after Musk’s Twitter takeover bid was introduced, Twitter’s inventory fell.
And according to MarketWatch, it fell 1.7% to a worth of $45.08, which is lower than what Musk provided per share in his bid.
Twitter’s board of administrators mounts a “poison capsule” technique towards Musk’s takeover bid
April 15, 2022: Twitter announced on April 15 that its board of administrators can be using a “poison capsule” deterrent towards Musk’s takeover bid. What’s a poison capsule? It’s principally when the present shareholders of given firm are allowed to buy extra shares at a reduced worth to weaken the possession curiosity of the individual attempting to take over (Musk).
According to Investopedia, there are totally different sorts of poison capsule methods, and the one we’ve simply described (the place you let all present shareholders purchase discounted shares, apart from the investor who’s attempting to take over) is called a “flip-in poison capsule.” This technique finally leads to the takeover changing into more and more cost-prohibitive for the investor who desires to take over.
Twitter’s poison capsule technique is predicted to kick in if Musk’s stake in Twitter will increase to fifteen% or greater.
This story continues to be in progress. We are going to proceed to replace this text has extra data comes out.
Editors’ Selection
