Elon Musk, Twitter’s largest shareholder and largest activist, offered to buy the rest of the social media company and take it private this morning. His “best and final offer,” as he put it in a financial filing, was $ 54.20 per share, about 40 percent more than Twitter’s stock price before the Mercury Billionaire’s purchase went public.
This bid holds a remarkable two weeks for Twitter and Mask, Which began with Tesla chief revealing that he had formed a 9-plus percent stake in the company, was created as a passive investment at the time. Twitter offered him a board seat, but he declined, removing any restrictions on his actions. “After thinking about this for the last few days, I have decided that I want to acquire the company and take it private,” Musk told Twitter chairman Brett Taylor in a public statement today.
Musk says he has lost confidence in Twitter’s management To meet the company’s “social obligation” as a platform for free speech. “Twitter has tremendous potential,” Musk said. “I’ll unlock it.” He has hired Morgan Stanley as an adviser to Bid and will not play “before-and-after” with his offer, he said.
So is it real? It may seem strange to ask about a person with a total value of 0 270 billion, but it is worth noting that there are no details about the financing of the mask proposal. His offer is worth more than $ 40 billion on Twitter, but his assets are mostly in Tesla shares and the company has limited limits on what he can borrow against the stock. If his debt needs financing, Musk has burned bridges with big lenders like Jepimorgan Chase, so his small balance sheet Morgan Stanley’s choice is significant. (Egan Durban of Silver Lake, a Twitter director, has experience in privatizing technology companies, but his private equity firm has a stagnant agreement with Twitter that apparently prevents it from participating in takeovers.)
No, seriously, is that true? Due to his day job as CEO of Tesla and SpaceX, Musk will face questions about whether he personally has the ability to buy a social media giant. (Twitter co-founder Jack Dorsey was questioned about whether he could become CEO of Twitter and Square and resign from Twitter.) It also lost to market observers that the $ 54.20 share echoes the infamous, unfortunate 2018 of the mask. Offer to take Tesla private $ 420 per share. (For non-connoisseurs, 420 is a slander in marijuana culture, and often masks are used in more humorous contexts.) More pertinently, Twitter shares in Musk’s offer jumped to premarket trading, but remained below its price – they traded more than its bid for most of last year. , Challenging his claim that “this is a high price and your shareholders will like it.”
What happens next? Twitter said it would “carefully review the proposal to determine what steps it believes are in the best interests of the company and all Twitter shareholders.” Dan Ives, an analyst at Wedbush, told Dilbook that Musk’s approach “is going to put incredible pressure on the board from a credible perspective.” Twitter’s board could probably argue that the price is too low and raises questions about the company’s strategic course in the hands of Mask. (For example, Musk suggests that Twitter should get rid of advertising, its main source of revenue.) The board may set up a so-called poison pill to prevent Musk or others from buying more shares, but other investors may not. He is like that.
For a company with just a few issues, including a previous brush with activist investors, the last few days have launched a whole new level of drama.
What’s happening here?
Starbucks may exclude unionized workers from the new facility. Starbucks interim CEO Howard Schultz told store managers that the proposals would not initially apply to newly unionized workers. The move raises questions among legal experts.
Amazon will demand “fuel and inflation surcharges” from third-party vendors. The surcharge will add 5 percent to the fee for keeping inventory with Amazon to reach customers. FedEx and UPS have raised fees in response to fuel costs.
The White House has warned that the supply chain problem will not end with an epidemic. President Biden’s top economists say deficits and shipping barriers will continue unless the United States invests in its supply chain. The report called on the government to do more to increase productivity and address inequality.
The airline mask mandate continues. The CDC said yesterday that travelers on planes and public transport must wear masks until at least May 3. Profits on airlines, which have been told to scrap the mandate, are rising as travel reaches pre-epidemic levels.
Economists say China’s official growth target is unrealistic. Experts say China’s “zero cove” policy will make it almost impossible to achieve 5.5 percent GDP growth this year. About a third of China’s population, or 373 million people, are in some form of epidemic lockdown.
Banking on consumers
A key part of the U.S. epidemic recovery playbook is pumping money into the pockets of consumers. It worked mostly. But the results of the first quarter of this week of the big banks are a warning sign for the situation of the US consumers, who spend more than two-thirds of the country’s economic output.
There is a pressure of profit. JPMorgan Chase, the country’s largest bank, saw its consumer revenue fall 57 percent from a year earlier. Wells Fargo and Citigroup’s consumer banking units saw profits fall 16 percent and 23 percent, respectively, they reported today. JPMorgan CEO Jamie Dimon told analysts in a call yesterday that he was monitoring inflation, rising interest rates and the war in Ukraine. “These are storm clouds on the horizon that may disappear,” he said, or “they may not.”
Risky loans are raising concerns. The 60-day crime rate on subprime auto loans in the United States was about 5 percent in February, the highest since early 2020 and down 4 percent a year ago. What’s more, investors are leaning towards risky lending agreements, and some “buy now, pay later” lenders, who have improved under epidemic restrictions, have seen their shares sink: Epherm’s stock has fallen 60 percent this year.
But consumers are still spending. Yesterday, Bank of America reported that consumers spent 11 percent more with its credit cards in March than a year earlier. In the first eight days of April, costs rose 15 percent. Recent results from banks indicate that there is a limit to what consumers can spend without hassle. “Consumer credit is free for banks, and it will never be again,” said Christopher Hollen, a banking industry consultant. “Consumers are not going to drive the economy as they used to.”
“These companies are very good in a very exciting and foamy capital market environment. The world has changed significantly in the last 60 days. “
– Next-round Capital Partners’ Ken Smith about the possibility of delivery start-ups, whose orders are beginning to take an epidemic. Philadelphia-based Gopf has raised more than $ 3 billion and Think it can do fast delivery differently.
Using no-confidence laws to protect employees’ salaries
The judiciary is leaning towards the old law in a new way. The Sherman Act of 1890 prohibits corporations from conspiring to hurt consumers. The Times’ Eduardo Porter reports that, for the first time, the government has filed multiple criminal cases accusing employers of colluding to withhold wages.
If the court agrees, it could drastically change the relationship between workers and employers. The department has filed six criminal cases under anti-law. The push in the Trump administration began late, and President Biden has taken it in stride.
Corporate America fears. “There is a role for distrust in the labor market,” said Shawn Heather, senior vice president of Antitrust at the US Chamber of Commerce. “But it’s a limited one.”
Is JPMorgan’s new weekend policy an improvement?
Last year, financial firms across Wall Street pledged to better manage the workload of employees when junior bankers talked about tough times. But have the changes helped fight the burnout?
Debate continues at JPMorgan, which has a new holiday policy for junior investment bankers: 10 federal holiday weekends, and analysts and collaborators can choose a quarterly weekend to log off and not be contacted when work is out. Previously, banks allowed these workers protection on one weekend a month.
JPMorgan says its policy is the best in the world. Holidays such as Thanksgiving, Memorial Day and Juventus have guaranteed weekends, in addition to the four weekly holidays a year the staff chooses for themselves.
But not all bankers agree. They say Someone The federal holiday needs to be always available during the weekend if work comes (like a big deal). And now they have no choice but to set aside other weekends for personal events like weddings.
The burnout turned into an industry-wide debate last year amid growing contract amounts. Banks have responded with policies to improve working conditions. For its part, JPMorgan has encouraged its bankers to leave the office by 7pm on weekdays, among other things. But long hours and unexpected work pressures have long been part of the reality of the industry. Is JPMorgan’s new vacation policy an improvement or more similar?
Speaking of time off, DealBook is taking a break for the Good Friday holiday tomorrow.
The United States will send another কোটি 600 million in military aid to Ukraine. (NYT)
The British Territory of Jersey has seized $ 7 billion in assets believed to belong to Russian oligarch Roman Abramovich. (NYT)
Germany has seized the world’s largest supermarket, claiming it is owned by Russian oligarch Alisher Usmanov. (Internal)
Activist investor Blackwells Capital is again calling for the sale of Peloton. (CNBC)
The Blackstone and Benetton families have submitted a $ 20 billion offer to Atlantia, an Italian infrastructure group. (FT)
A shareholder is suing Berkshire Hathaway for blocking Allegheny’s $ 11.6 billion takeover. (Reuters)
Mick Mulvani, a former Trump administration official, will advise the Astra protocol, a crypto compliance firm. (Bloomberg)
Vaping giant Jules has agreed to a 22.5 million settlement with Washington State over allegations of marketing to underage users. (Bloomberg)
Meet Gerald Migdall, developer of the Harlem property at the center of the federal investigation into the removal of New York State Lieutenant Governor Brian Benjamin. (NYT)
The rest is the best
In several states, teachers have seen their biggest increase in decades. Will it improve school education? (NYT)
There is a lot of work to be done to achieve Intel’s net zero emissions target. (Protocol)
“America’s Top Earners and Their Taxes Revealed.” (Proposal)
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