For those who’re having hassle 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 a substitute of clicking by hashtags on Twitter to search 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 could know to make sense of this social media Succession-like scenario.
Musk begins shopping for up Twitter shares in batches “virtually each day”
January 31, 2022: Whereas this story appears to have began in April, its beginnings actually lie again in January of this 12 months. The Related Press stories that regulatory filings confirmed that the Tesla CEO started shopping for Twitter shares on January 31 on an “virtually each day” foundation.
Although few took discover, it’s clear Musk had an early curiosity in increase stake in Twitter.
Musk declares 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 hen app’s largest 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 ballot on Twitter, asking his followers in the event that they needed an edit button.
Would you like an edit button?
— Elon Musk (@elonmusk) April 5, 2022
Twitter gives him a seat on its board
April 5 2022: Not lengthy after Musk’s 9% stake within the firm is introduced, Twitter gives him a seat on its board. Twitter CEO Parag Agrawal declares Musk’s appointment to the board by way of a tweet on April 5.
The board seat provide got here with a stipulation that Musk wouldn’t buy greater than 14.9% of Twitter’s remaining inventory. Musk initially accepted this provide, saying he was trying ahead to working with the staff “to make vital enhancements to Twitter.”
I’m excited to share that we’re appointing @elonmusk to our board! By conversations with Elon in current weeks, it turned clear to us that he would convey nice worth to our Board.
— Parag Agrawal (@paraga) April 5, 2022
Vanguard Group reveals its bigger stake
April 8, 2022: Regulatory filings confirmed 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 provide
April 9, 2022: Musk declines Twitter’s board seat provide. He was really presupposed to formally be part of the board that day, however as a substitute selected to not be part of that morning, in response to Twitter’s CEO.
April 10, 2022: The subsequent day, Agrawal declares by way of a tweet that Musk had declined to hitch Twitter’s board. It was unclear initially why Musk selected to not be part of, however it appears his larger intentions have been nonetheless within the works.
Elon has determined to not be 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 information a lawsuit in opposition to Musk
April 12, 2022: Twitter investor Marc Bain Rasella filed a lawsuit in opposition to Musk in a New York federal courtroom. The lawsuit alleges the next:
- That Musk could have did not report his Twitter share purchases to the Securities and Alternate Fee (SEC) on time (inside 10 days), and that, due to that, traders who offered their shares and have been unaware of Musk’s buy doubtlessly missed out on features they may have gotten when his buy turned 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 lower cost.
Musk gives to purchase Twitter for $43 billion
April 14, 2022: On April 14, Musk tweets that he made a suggestion to purchase Twitter. The provide is for $43 billion, and Musk needs to take the corporate non-public. Particularly, he needs to purchase Twitter at $54.20 per share — that’s his “greatest and last provide.”
In response to a letter included inside the SEC submitting for the bid to purchase Twitter, if the provide shouldn’t be accepted, Musk mentioned: “I would want to rethink my place as a shareholder.”
I made a suggestion https://t.co/VvreuPMeLu
— Elon Musk (@elonmusk) April 14, 2022
Twitter inventory falls as Musk declares bid to purchase Twitter
April 14, 2022: Not lengthy after Musk’s Twitter takeover bid was introduced, Twitter’s inventory fell.
And in response to MarketWatch, it fell 1.7% to a value of $45.08, which is lower than what Musk supplied per share in his bid.
Twitter’s board of administrators mounts a “poison tablet” technique in opposition to Musk’s takeover bid
April 15, 2022: Twitter introduced on April 15 that its board of administrators could be using a “poison tablet” deterrent in opposition to Musk’s takeover bid. What’s a poison tablet? It’s mainly when the present shareholders of given firm are allowed to buy extra shares at a reduced value to weaken the possession curiosity of the particular person attempting to take over (Musk).
In response to Investopedia, there are totally different sorts of poison tablet 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 tablet.” This technique finally leads to the takeover changing into more and more cost-prohibitive for the investor who needs to take over.
Twitter’s poison tablet technique is predicted to kick in if Musk’s stake in Twitter will increase to fifteen% or larger.
This story remains to be in progress. We are going to proceed to replace this text has extra data comes out.
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