Global Economic Intersection
Advertisement
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
Global Economic Intersection
No Result
View All Result
Home Business

Twitter Embraces ‘Poison Pill’ Strategy As Musk’s Challenger Appears

John Wanguba by John Wanguba
April 17, 2022
in Business
0
0
SHARES
93
VIEWS
Share on FacebookShare on Twitter

Twitter Inc (TWTR.N) adopted a ‘poison pill’ on April 15 to cap Elon Musk’s ability to raise his stake in the social media platform after a buyout company came up to challenge Musk’s $43 billion bid for the firm.

Elon Musk offers to buy Twitter for $41 billion

People familiar with the matter said, Thoma Bravo, a technology-focused private equity firm that had over $103 billion in assets under management by the end of December 2021, has told Twitter that it is examining the possibility of putting together a bid.

Asking not to be identified because the matter is confidential, the sources cautioned that there is no certainty that such a rival bid will materialize and it is not clear how much Thoma Bravo would be prepared to offer.

While Twitter representatives did not immediately respond to a request for comment, a Thoma Bravo spokesperson also declined to comment. Thoma Bravo was considering a bid for Twitter, the New York Post reported on April 14.

To dilute anyone amassing more than a 15% stake in the company by selling more shares to other shareholders at a discount, Twitter said on Friday that it had adopted a poison pill. The poison pill, known formally as a shareholders’ rights plan, will be in place for 364 days.

Musk would not be barred by the move from taking his offer directly to the Twitter shareholders. He can do that by launching a tender offer. The tender offer would allow most Twitter shareholders to register their support or disapproval of Musk’s offer despite the poison pill preventing them from selling their shares.

Analysts Comment On The Twitter Takeover Saga

Dan Ives, a Wedbush analyst, tweeted on Friday:

“It is a predictable defensive measure for the board to go down that will not be viewed positively by shareholders given the potential dilution and acquisition unfriendly move.”

The specter of more private equity firms vying for Twitter is raised by Thoma Bravo’s interest. According to data provider Preqin, the global private equity industry is sitting on about $1.8 trillion in dry powder. Most buyout firms would not encounter antitrust restrictions in acquiring Twitter, unlike major technology conglomerates.

It remains possible that a private equity firm will strengthen Musk’s bid by joining forces with him instead of challenging him. However, several private equity firms are concerned about teaming up with Musk due to his criticism of Twitter’s reliance on advertising for most of its revenue, industry sources said. This is because financing a leveraged buyout is much easier with a strong cash flow that it makes.

Elon Musk sets his sights on Twitter

A natural partner for Musk would be Silver Lake, a private equity firm with more than $90 billion in assets under management, as it offered financing for his $72-billion bid for Tesla Inc (TSLA.O) four years ago, which Musk eventually abandoned. Egon Durban, Silver Lake’s co-chief executive, also sits on Twitter’s board.

However, when Twitter’s board met to discuss Musk’s offer for the first time on Thursday, people familiar with the matter said, Durban, did not recuse himself, in a sign that Silver Lake has not sought to make a bid of its own or team up with Musk this far.

The possibility that Silver Lake will choose to become involved as a buyer remains likely. A spokesperson of Silver Lake failed to immediately respond to a request for comment on Friday.

Buy Bitcoin Now

‘BEST AND FINAL OFFER’

Providing some comfort to banks considering whether they should provide debt for a deal, Twitter has an annual cash flow of close to $700 million and it has more than $6 billion of cash on its balance sheet. Yet, a leveraged buyout for Twitter could be the biggest of all time, potentially requiring the collaboration of several buyout firms and other major institutional investors.

With a net worth pegged by Forbes at $265 billion, Musk is the world’s richest person. Regardless, he has drawn a line on how much he is willing to pay. On April 13 he informed Twitter that his $54.20-per-share all-cash bid for the company was his “best and final offer”.

He then insisted that if it was rejected, he would reconsider his position as a Twitter shareholder. After mutual fund giant Vanguard, Musk is the largest shareholder, with more than a 9% stake in Twitter.

Musk Offers $43B For Twitter To Create 'Arena For Free Speech'

On April 14, Musk tweeted that Twitter’s shareholders should comment on his offer and posted a poll on Twitter in which most users agreed with him. Musk’s offer is still being assessed by Twitter’s board and would only be put to the company’s shareholders for a vote if it approves it.

Twitter Share prices fell on Thursday, suggesting that most investors expect Musk’s bid to be rejected as inadequate and thin on financing details by the company’s board.

Sources familiar with the matter said the company’s board is expected to take several extra days to assess Musk’s bid and draft its response. The sources added that an outcome over the weekend is unlikely.

Twitter’s board is being advised by Goldman Sachs Group Inc (GS.N) on its deliberations. JPMorgan Chase Co Inc (JPM.N) had been tapped by the board as a second financial adviser, Bloomberg News reported on Friday.

Tags: businessbusiness regulationElon MuskinvestmentPoison Pillregulationsocial mediatakeoverTeslaThoma BravoTwitterU.S. Securities and Exchange Commission (SEC)US
Previous Post

Goldman Profit Beat Expectation Due To Strength In Trading, Wealth Management

Next Post

Beanstalk Farms Loses $182M In A DeFi Governance Hack

Related Posts

HP And NVIDIA Unleash ‘Unique’ Fintech Sitcom
Business

HP And NVIDIA Unleash ‘Unique’ Fintech Sitcom

by John Wanguba
July 1, 2022
Grayscale Suing SEC After Spot Bitcoin ETF Rejection
Business

Grayscale Suing SEC After Spot Bitcoin ETF Rejection

by John Wanguba
June 30, 2022
Tesla Closes Office As Layoff Affects Autopilot Jobs, Including Hourly Ones
Business

Tesla Closes Office As Layoff Affects Autopilot Jobs, Including Hourly Ones

by John Wanguba
June 30, 2022
Barclays Clinches $2.8B Deal To Take Over Mortgage Lender Kensington
Business

Barclays Clinches $2.8B Deal To Take Over Mortgage Lender Kensington

by John Wanguba
June 25, 2022
Raisin Bank Enters Payments Business Through Acquisition
Business

Raisin Bank Enters Payments Business Through Acquisition

by John Wanguba
June 24, 2022
Next Post
Beanstalk Farms Loses $182M In A DeFi Governance Hack

Beanstalk Farms Loses $182M In A DeFi Governance Hack

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins banking banks Binance Bitcoin Bitcoin adoption Bitcoin market Bitcoin mining blockchain BTC business China Coinbase crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi Elon Musk ETH Ethereum finance funding investment market analysis markets Metaverse mining NFT NFT marketplace NFTs nonfungible tokens nonfungible tokens (NFTs) price analysis regulation Russia social media technology Tesla the US Twitter

Archives

  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • August 2010
  • August 2009

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized
Global Economic Intersection

After nearly 11 years of 24/7/365 operation, Global Economic Intersection co-founders Steven Hansen and John Lounsbury are retiring. The new owner, a global media company in London, is in the process of completing the set-up of Global Economic Intersection files in their system and publishing platform. The official website ownership transfer took place on 24 August.

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Recent Posts

  • Bitcoin June Close Scarcely Beat 2017 Highs As Coinbase Premium Flipped Positive
  • 57% Of Consumers Think Corporations Need To Respect Their Gender Identity – MasterCard
  • HP And NVIDIA Unleash ‘Unique’ Fintech Sitcom

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

No Result
View All Result
  • Home
  • Contact Us
  • Bitcoin Robot
    • Bitcoin Profit
    • Bitcoin Code
    • Quantum AI
    • eKrona Cryptocurrency
    • Bitcoin Up
    • Bitcoin Prime
    • Yuan Pay Group
    • Immediate Profit
    • BitIQ
    • Bitcoin Loophole
    • Crypto Boom
    • Bitcoin Era
    • Bitcoin Treasure
    • Bitcoin Lucro
    • Bitcoin System
    • Oil Profit
    • The News Spy
    • British Bitcoin Profit
    • Bitcoin Trader
  • Bitcoin Reddit

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

en English
ar Arabicbg Bulgarianda Danishnl Dutchen Englishfi Finnishfr Frenchde Germanel Greekit Italianja Japaneselv Latvianno Norwegianpl Polishpt Portuguesero Romanianes Spanishsv Swedish