Elon Musk Wants to Buy Twitter: Everything You Need To Know
All eyes are on Twitter (NYSE: TWTR) shares this morning after Tesla (NASDAQ: TSLA) CEO Elon Musk proposed taking the business private at $54.20 per share, valuing it at $43.4 billion. Musk already owns 9.2 percent of TWTR stock, therefore the suggestion is to purchase the remaining shares. The proposal price is also an 18% premium over yesterday’s close.
TWTR stock is currently up more than 2% as a result of the news. Here’s what investors should be aware of going forward.
What Does Elon Musk’s Bid Mean for TWTR Stock?
Elon Musk has put Twitter shareholders in a difficult position. The Tesla CEO stated the following in an amended 13D filing:
Since making my investment, I’ve realized that the company, in its current shape, will neither survive nor satisfy this societal necessity.” Twitter must be restructured as a private firm.”
If Twitter accepts the executive’s offer, the firm will be delisted from the New York Stock Exchange and will no longer be tradable by the general public. Furthermore, if the plan is rejected by the board, TWTR stock may drop. Musk stated that if the bid is not accepted, he will “rethink [his] position as a shareholder.” The bid also serves as his “best and final offer.” Twitter’s board of directors will meet this morning to debate the proposal.
Even if Musk’s offer is rejected by the board, the message is clear: Twitter needs to change. The social media network has recently had a history of mediocre feature rollouts, such as Twitter Fleets and Twitter Blue. Furthermore, user requests for an edit button have been ongoing for years, with the corporation failing to deliver an update. However, there may be a silver lining. Twitter’s official account tweeted on April 1 that the business is “working on an edit button.”
Twitter is currently trading at around $47, or around 12% less than the asking price. This could imply that TWTR stockholders are aware of the possibility of the proposal being rejected.
As of the present, it is unclear how Musk intends to fund his idea if it is accepted. Among other things, the CEO might sell TSLA stock or borrow against his Tesla position. According to CNN Business, Musk presently owns almost $177 billion in TSLA.
How Do Analysts Feel About the Elon Musk Twitter Offer?
According to Wedbush analyst Dan Ives, this proposal price is appealing and may put the “Twitter board’s backs against the wall.” Musk, on the other hand, must make various changes in order to earn a reasonable return on his investment. Among these are boosting subscription revenue and lowering costs.
Meanwhile, Vital Knowledge President Adam Crisafulli believes the offer is too low, citing Twitter’s recent trading in the $70 region. Gene Munster of Loup Funds also joined in. “Put it all together; Musk taking over Twitter is more likely than not,” Munster tweeted.
Apart from this, if you are interested; you can also read Entertainment, Numerology, Tech, and Health-related articles here:
7starhd, Movieswood, How to Remove Bookmarks on Mac, Outer Banks Season 4, How to block a website on Chrome, How to watch NFL games for free, DesireMovies, How to watch NFL games without cable, How to unlock iPhone, How to cancel ESPN+, How to turn on Bluetooth on Windows 10, Outer Banks Season 3, 6streams, 4Anime, Moviesflix, 123MKV, MasterAnime, Buffstreams, GoMovies, VIPLeague, How to Play Music in Discord, Vampires Diaries Season 9, Homeland Season 9, Brent Rivera Net Worth, PDFDrive, SmallPDF, Squid Game Season 2, Knightfall Season 3, Crackstream, Kung Fu Panda 4, 1616 Angel Number, 333 Angel Number, 666 Angel Number, 777 Angel Number, 444 angel number, Bruno Mars net worth, KissAnime, Jim Carrey net worth, Bollyshare, Afdah, Prabhas Wife Name, Project Free TV, Kissasian, Mangago, Kickassanime, Moviezwap, Jio Rockers, Dramacool, M4uHD, Hip Dips, M4ufree, Fiverr English Test Answers, NBAstreamsXYZ, Highest Paid CEO, The 100 season 8, and F95Zone.
Thanks for your time. Keep reading!
To Read Our Exclusive Content, Sign up Now.
$5/Monthly, $50/Yearly