Elon Musk has Twitter’s embattled board and management crew by the, effectively, you know what.
The Tesla CEO, who has a 9.2% stake in Twitter, made available to get the social media platform for $54.20 a share. Twitter verified in a press launch that it received Musk’s provide and reported the board of directors “will carefully assessment the proposal to determine the study course of motion that it believes is in the ideal curiosity of the Enterprise and all Twitter stockholders.”
The base line is Twitter’s board has a few possibilities.
1st, the board — led by new Salesforce co-CEO Bret Taylor — could possibly accept Musk’s very good bid and generate certainty of price for shareholders right after numerous long many years of suffering and letdown.
Option two, it could rebuff Musk and view as he dumps his complete stake in the corporation. In transform, that would probably set material downward pressure on Twitter’s inventory price presented the community problems Musk has expressed on Twitter’s organization.
Decision 3 you question? A established of steak knives.
“I believe for the board, Musk is their worst nightmare. They acknowledge the bid or go close to the globe looking for an additional a person,” reported Wedbush analyst Dan Ives on Yahoo Finance Are living. “Musk is not heading absent.”
Twitter shares had surged 13% in pre-current market trading. But the stock fell a bit in the early afternoon on fears Twitter would rebuff Musk’s offer, he would dump his stake and send out the share price tag reeling.
And as the share value probably goes into absolutely free fall, Twitter could be slapped with lawsuits from shareholders who are disappointed with the board’s determination.
As Ives additional, it is time to “crack out the popcorn.”
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Brian Sozzi is an editor-at-huge and anchor at Yahoo Finance. Stick to Sozzi on Twitter @BrianSozzi and on LinkedIn.
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