A Brief Timeline of Elon Musk’s Twitter Takeover
Elon Musk biggest deal $44 Billion became successful after three weeks Musk disclosed a 9.2% stake in firm, and 11 days after he announced his “best and final” offer of $54.20 a share for the rest of the company.
Table of Contents
On April 25, Twitter accepted to sell itself to Elon Musk, CEO of Tesla, the world’s richest man. On April 4, Musk revealed that he became the largest shareholder in Twitter. After this tweet there have been many developments here is the brief timeline of how musk acquired the blue bird.
Musk started buying Twitter shares. By March 14, he became shareholder of more than 5% of the company. Till this time he was supposed to inform the Securities and Exchange Commission of his purchase. But Musk missed the deadline by 10 days, during that time he was able to buy more shares in cheap. This later triggered a shareholder lawsuit.
Till this time Musk didn’t disclosed his stake and no announcement was made. He criticized Twitter by tweeting “Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done?“. He then started poll on Twitter about making Twitter’s algorithm public/open source.
Musk asked his Twitter followers in a poll, “ Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?”
Free speech is essential to a functioning democracy.— Elon Musk (@elonmusk) March 25, 2022
Do you believe Twitter rigorously adheres to this principle?
In his tweet Musk asked “Is new platform needed? I am giving serious thought to this”.
In SEC regulatory filing Elon’s stake in twitter became public that he is the largest individual shareholder with 9% percent stake in Twitter. But Musk twitted another poll asking users if they want an edit button. Twitter CEO Parag Agarwal joined in by asking users to vote carefully as the consequences would be serious.
After that Twitter invited Elon to join the board. Elon hinted that he can sign an agreement, which means he will not be able to own more than 14.9% of Twitter’s stock.
Twitter CEO Parag Agrawal made the announcement that Elon musk will join the board as an active investor. Parag Agrawal also tweeted “He’s both a passionate believer and intense critic of the service which is exactly what we need on Twitter, and in the boardroom, to make us stronger in the long-term. Welcome Elon!“
Elon replied to this tweet that he is looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!
On the day when Musk was all set to join the board Musk rejected the offer tweeting that he will not join the board making several criticism and suggestions for improvement in Twitter.
Musk filed an amended disclosure with the SEC by which he will now able to purchase as many shares as he wants. And as he didn’t become board member he will not have to be concerned about the best interest of Twitter’s shareholders.
Marc Brian a Twitter investor filed a lawsuit in New York federal high court alleging Elon that he didn’t disclose his purchase of 5% within the deadline and saved $143 million as a result illegally.
In a tweet Elon Musk made an offer to buy Twitter for $43 billion or at $54.20 per share and it is his best and final offer. And In an SEC filing Elon warned that if the offer is not accepted, he would reconsider his position as a shareholder.
After Elon’s tweet Twitter’s shares fell by 1.7 percent to a price of $45.0. Later that in TED event in Vancouver, Musk revealed his plans of taking over Twitter and also revealed that he has a Plan B but didn’t elaborated it.
Taking Twitter private at $54.20 should be up to shareholders, not the board— Elon Musk (@elonmusk) April 14, 2022
In his tweets Elon Musk said, “With Jack(Founder and former CEO of Twitter) departing, the Twitter board collectively owns almost no shares.”
Jack Dorsey replied “It’s consistently been the dysfunction of the company.” Dorsey is scheduled to leave the board once his term expires on May 25.
After the recent filing with US Securities and Exchange Commission it was reported that Vanguard disclosed that it owns 82.4 million shares or 10.3% of the company which removed the Elon from title of largest shareholder of Twitter.
The New York Post reported that Elon was willing to invest up to $15 billion of his own cash and borrow against his Twitter stake to push through a deal.
Elon Musk explored a tender offer for Twitter, saying he’d secured $46.5 billion in funding. In filing with SEC it showed that he has financing from Morgan Stanley and other financial institutions, including margin loans backed by his equity stake in Tesla and $21 billion in equity financing from himself.
Negotiation and talks took place between Twitter’s board and Musk and Musk represented his details of financing.
On April 25, Twitter agreed for his original offer of $54.20 a share. The deal, valued at about $44 billion, with the deal Elon will take company private. Musk said he will prioritize free speech on the site, open-source its algorithms, eliminate spam and add new features. Twitter said it expects the deal to close in 2022.
Leave a Comment
Infostation is a Professional Tech Update and Tech News Platform. We work hard to bring you interesting content, which you will like very much. We’re dedicated to providing you the best of Tech Updates, with a focus on dependability.