Elon Musk Discloses Offer to Buy Remaining Outstanding Shares of Twitter for $54.2 a Share.
Rich people are very keen to buy well-known media platforms and export ideology. A few years ago, Jeff Bezos bought The Washington Post. And then The Washington Post becomes the pioneer of critizing Trump.
After Musk bought a 9.2% stake in TWTR, the current CEO Parag Agrawal of TWTR invited Ma to join the board, because he must have seen that Musk wanted to change the current state of Twitter on a large scale, which was rejected by Musk. Now it seems that Ma wants to buy Twitter. After TWTR's share price dropped sharply to around $35 at the end of January this year, we began to suggest that TWTR's share price at that time was very likely to be the target of acquisition. After the adjustment, the market value of 230 billion yuan was too high. Two months later, the development of the current situation was basically in line with the judgment at that time, but I did not expect that it was Musk who made the final move.
There is no problem with the funds for the acquisition of TWTR. It is estimated that there are several strategic partners who have done this with Musk and privatized together. Although Musk is the richest man, he may not be able to hold so much cash at once. These strategic partners can also sell Tesla stock or pledge Tesla stock equity together. There are many ways, and money is not a problem at all. If privatization is finally established, it can kill the entire board of the current TWTR, and then modify and develop it according to Musk's ideas. Musk often criticizes the problems of TWTR. After a few years, the IPO will be re-listed, and the valuation will be estimated to be more than 100 billion.
Now TWTR's board of directors has 11 people, even if Musk goes in, there is only one seat. It's too energy-consuming to argue with the 11 people on the current board of directors. Musk will not be willing to do these things. It's better to find someone to work together to privatize, kill the board, and do whatever he wants in the future. Musk brings his own flow, capital, and strong management style. Even when he did not hold TWTR before, Musk did not necessarily spend less time on TWTR than Tesla, because he had to express his views and bring goods on TWTR for free traffic.
In fact, there is no good choice for TWTR itself. It depends on whether the board agrees or not or what countermeasures it has. Musk can build his own platform. If Musk starts a new business, it will be no problem to win half of TWTR's American market. Now TWTR itself is Tesla's free public relations department + marketing department. TWTR's own corporate structure, especially the shareholding structure, has some problems, and it needs a big man like Musk to start over.
So why did Musk buy TWTR? Musk not only needs TWTR to become Tesla's marketing department, but also needs TWTR, a platform with strong media attributes, to export his views and ideology.
Would Musk run for the President of the US if he was born in the US?
Musk：it is best and final offer. EM is the man.
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