Five questions about Elon Musk’s Twitter takeover bid

Over the weekend, the Twitter board placed a poison pill provision in an attempt to block Elon Musk, you may have heard, wanting to buy the social media platform. This strategy will give Twitter management time to evaluate the offer and potentially invite other buyers through a sales process.

At least one private equity firm, Thomas Bravo, is interested, although it is unclear whether this will become a formal offer. Mask could take other steps to overtake Twitter’s reluctant board. In the meantime, we have big questions about where the mask bid for Twitter goes from here:

Will the musk be hostile? He seems to be threatening it; At least that’s what Elvis Presley quoted in his tweetLove me tenderly”Seems to mean. In a tender offer, also known as an unfavorable bid, Mask will go directly to the shareholders, asking them to “tender” their shares at a fixed price (currently his offer is $ 54.20 per share). This requires him to file a form with the SEC which, among other things, provides details about the financing behind his bid. This is important because there are questions about how Mask will get cash for the Twitter deal.

Can a hostile bid override Twitter’s poison pills? No, but if enough shareholders support Mask’s bid, it could put pressure on Twitter’s board to remove the defense. In 2012, CVR Energy, for example, removed a poison pill that had been set up to thwart him after receiving overwhelming support for the tender of activist investor Carl Icon.

What is the value of Twitter? Several analysts say they think Mask’s bid is too low, and the board can only accept offers of $ 60 or more per share. However, this is partly due to Twitter’s ability to reach higher financial targets, which pushed it above $ 70 per share when it announced last year. But Twitter’s stock has fallen nearly 45 since then, as investors questioned its ability to meet the company’s goals and stop competing with other social media sites.

What is the value of an “uncensored” Twitter? It’s harder to say. Musk suggested he would promote more “free speech” on the platform, but Twitter insiders pointed to the stagnation of user growth in 2016 ahead of the company. Content is tight up, As a precaution. “They’ve grown significantly in users over the last few years,” said Rich Greenfield, a media industry analyst at LightShed Partners, about Twitter’s growth since the 2016 transition, which limited further content. “In order to disrupt the platform, I think users have to go the wrong way.”

Will other buyers step in? Maybe, maybe not. Distrust concerns will probably make it harder for many corporate buyers, especially in the technology industry. This is a big check for private equity, surpassing last year’s $ 30 billion tech-private medline, the largest leveraged purchase in more than a decade. Twitter’s limited free cash flow makes it less attractive to finance with many loans.

Read more: Kasturi has often been described as a libertarian, but It is difficult to identify his true political philosophy.

Bank of America exceeds revenue expectations. The bank’s first-quarter profit fell 12 percent from a year earlier, but held up better than its rivals. Debt growth rose 10 percent in the quarter, a positive sign for the US economy.

On Tax Day, the Treasury appealed for more IRS funds. Staff shortages and a huge backlog of returns have made this tax season particularly complicated, but proposals to increase the IRS’s budget have fallen flat in Congress.

China’s economic data indicates the cost of its “zero covid” strategy. Economic growth of 4.8 percent in the first quarter was only slightly higher than in the previous quarter, and the slowdown in March was overshadowed by the severe lockdown that closed factories and restricted millions of customers to their homes. The recession is expected to get worse this month.

President Biden has again tried to fill a top Fed position in the Fed. The White House has said it wants to nominate Michael Barr as vice chairman of the central bank. Barr, a former official in the Obama administration, may have a better chance of gaining support because he is seen as more moderate than Sarah Bloom Raskin, whose nomination was dragged down by a lack of sufficient Senate support.

Sri Lanka has shut down its stock market as its economic instability has worsened. The Colombo Exchange will be closed for five days from today. The country has recently defaulted on its debt as rising inflation and deficits have led to growing civil unrest.

Twitter is the real platform for the crypto community debate, so Elon Musk’s acquisition of Twitter has inevitably sparked a lot of discussion on the site. Kasturi’s liberal line is aligned with crypto policy; Tesla’s balance sheet contains about 75 1.75 billion bitcoins; And the joke token drives the popularity (and price) of his tweets about Dogecoin, which makes Mask a religious figure in the community.

Many important figures on Crypto Twitter have hailed Musk’s move, especially his talk of further decentralizing social networks and integrating aspects of Crypto’s operations, while others have questioned the wisdom of his takeover efforts. Here is what a handful of crypto bigwigs have to say about it (of course in tweets):

  • Charles HoskinsonCardano is the founder of the platform and a primary contributor to Ethereum, Wants to enter: “Elon, if Twitter rejects your offer, hit me. Glad to build a decentralized one.”

  • Sam Bankman-FriedAlso the founder of Crypto Exchange FTX There is a plan How a decentralized Twitter can work: “Will it democratize social media, make money transparent and remove the single point of failure moderation? Yes. “

  • Justin Sun.Founder of Tron Network, he said he would offer More prices for Twitter More than a mask (without any further details): “We fully support its reform initiative @ Elnmask And I want to see Twitter become crypto-native and Web3 friendly. “

  • Vitalic buterin, Co-founder of Ethereum Network, There are concerns: “Elon would not oppose running Twitter (at least not in a stable way), but I do agree with the more generalized incentives for anti-wealthy social media firms of wealthy individuals / organizations. It could easily be * very * wrong. “

  • Jackson PalmerDogecoin co-founder, So not sure, either: “Adding any kind of ‘freedom’ to the richest person in the world takes some fantastic emotional gymnastics and starts a hostile takeover and forces one of the largest public social media platforms to privatize.”


“We are so divided today, so revived that even Disney is having a hard time uniting us.”– Martin Kaplan, former Disney executive, how the entertainment monster The party has been dragged into the political arena.

“We didn’t know how it would turn out, but we knew there would be a heavy penalty if we didn’t swing for the fence.”– Jim Farley, CEO of Ford, How to Introduce an Electric F-150 Pickup Truck The future of the Detroit automaker.

“Everyone has a breaking point. You can only feel ungrateful for so long. “Mary Gundell, who was fired as manager of the Dollar General Store in Florida Her TikTok video about the difficult work situation has gone viral.


Late last week, European leaders began drafting a plan to ban Russian oil imports, which would cut off a major source of funding for Russia’s war against Ukraine. Even before Russia invaded Ukraine, the European Union set aggressive targets to reduce carbon emissions. But the war has transformed Europe, which has served as a precedent for the rest of the world, more urgently. Biggest problem: In the competition for capital, sectors like crypto and metavers are losing the green energy to invest “fast money”, reports Ash Nelson and Adam Satriano of the Times.

The solution is available if a financial push is given. According to the International Energy Agency, about half of the emissions reduction will come from technology to meet the net-zero target by 2050. Theoretically, there are many trillion-dollar jobs available to finance this transformation into green energy.

But it was difficult to attract investors to the green energy project. Venture capitalists are even more fascinated with other types of start-ups: According to Pitchbook, last year, venture companies invested $ 11.9 billion in renewable energy worldwide, compared to $ 30.1 billion in cryptocurrencies and blockchains.

There are some signs of improvement. The Bill Gates-backed Breakthrough Energy Catalyst, formed in late 2021, and 360 Capital, a venture capital firm based in Paris and Milan, are launching a growing fundraiser focusing on early-stage green technology, expanding its dedicated Clean Energy Fund. Done. Nevertheless, green-energy companies that specialize in software and AI are getting the lion’s share of new investment, instead of complex hardware like batteries.

Investors say the government needs to play a bigger role in steering investments. Industries like steel and concrete may be forced to adopt green methods of production and tax credits may be given to green innovators and venture capitalists. “We have to be real,” said Tony Fidel, founder of Nest, who has shaped his personal destiny into a future, a fund that addresses social challenges. “A lot of people are investing in things that are not going to solve the problems of our existence.”

Russia-Ukraine war

  • At least seven people have been killed in a Russian missile strike in the western city of Lviv. (NYT)

  • “How Russian media uses Fox News to sue” (NYT)

  • China is helping Russia avoid Russian sanctions on pollock, salmon and crabs. (AP)

Deal

  • A court battle between Michael Klein and the insurer Multiplan’s shareholders raises concerns about SPAC’s future. (FT)

  • “Hedge-fund field lapping 26-year-old dropout” (WSJ)

  • As the NFT market cooled, Jack Dorsey’s first tweet, which sold for $ 2.9 million a year ago, could fetch just $ 14,000 at auction. (WSJ)

Policy

  • How the Biden administration’s “single biggest policy success for now, has turned into a signal of political failure.” (Times Opinion)

  • Trump has overtaken the Republican National Committee and turned Mar-a-Largo into an important campaigner. (NYT)

  • Faced with defamation lawsuits, Inforce and other companies owned by far-right broadcaster Alex Jones have filed for bankruptcy. (Bloomberg)

  • “Is covid more dangerous than driving?” (NYT)

The rest is the best

  • Deloitte has reduced its office space in London by about 250,000 square feet, as its staff often work from home. (FT)

  • Mortgage payments as a percentage of income in the United States are the highest since the 2008 housing bubble. (Fate)

  • “The Battery That Flies” (NYT)

  • Jordan Belfort, inspired by “The Wolf of Wall Street”, is now marketing himself as a cryptocurrency guru. (NYT)

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