Elon Musk has Twitter’s embattled board and administration workforce by the, properly, you know what.
The Tesla CEO, who has a 9.2% stake in Twitter, provided to buy the social media system for $54.20 a share. Twitter verified in a push release that it been given Musk’s present and said the board of administrators “will cautiously critique the proposal to figure out the study course of motion that it believes is in the greatest desire of the Company and all Twitter stockholders.”
The bottom line is Twitter’s board has three possibilities.
1st, the board — led by new Salesforce co-CEO Bret Taylor — could either accept Musk’s extremely fair bid and push certainty of value for shareholders following several extensive yrs of suffering and letdown.
Selection two, it could rebuff Musk and look at as he dumps his overall stake in the corporation. In turn, that would probable place substance downward tension on Twitter’s inventory selling price specified the community concerns Musk has expressed on Twitter’s business enterprise.
Preference 3 you inquire? A established of steak knives.
“I consider for the board, Musk is their worst nightmare. They acknowledge the bid or go all around the globe seeking for a different 1,” reported Wedbush analyst Dan Ives on Yahoo Finance Live. “Musk is not going absent.”
Twitter shares had surged 13% in pre-market place trading. But the stock fell somewhat in the early afternoon on fears Twitter would rebuff Musk’s give, he would dump his stake and deliver the share selling price reeling.
And as the share value possibly goes into absolutely free tumble, Twitter could be slapped with lawsuits from shareholders who are unsatisfied with the board’s decision.
As Ives included, it truly is time to “split out the popcorn.”