The social media and communication platform Twitter, responded to the bid by billionaire entrepreneur Elon Musk by announcing Friday the Twitter board of directors has unanimously adopted a “poison pill” defense in response to Tesla CEO Elon Musk’s proposal to buy the company and take it private. [LINK to Press Release]
Twitter said the move, formally called a “limited duration shareholder rights plan,” aims to enable its investors to “realize the full value of their investment” by reducing the likelihood that any one person can gain control of the company without either paying shareholders a premium or giving the board more time. Poison pills are often used to defend against hostile takeovers.
According to Twitter’s plan, if Musk or any other person or group acquires at least 15 percent of Twitter’s stock, the poison pill will trigger.
At that point, every other shareholder, aside from Musk, would be allowed to purchase new shares of Twitter at half the going market price, which stood at $45.08 at the closing bell on Thursday.
The flood of half-price shares would effectively dilute Musk’s ownership stake, making it massively more expensive for him to build up a controlling position. Twitter said its board had voted unanimously in favor of the plan, which will remain in effect until April 14, 2023.
Obviously, the people in control of Twitter really do not want to lose control over the platform. Elon Musk’s offer to purchase Twitter at $54.20 per share, represents a value of 38% more than his first shares purchased. The public shareholders would make a sizeable return on their investment. However, the fiduciary responsibility of a board of directors to its shareholders is really not what this is about.
In the big picture, Twitter is a bottomless pit of financial cost. Once you understand the technology behind Twitter, it is easy to understand why the public speech platform is not a viable business model, and it never was.
Twitter is exclusively a ‘user engagement‘ social media platform with no hosted content. Twitter is massively expensive to operate because the costs of operating the technology, all of which are driven by the substantive issue of ‘simultaneous users‘, exceeds the capacity of the platform to generate revenue.
Almost all other internet websites and social media have two structures: (A) Content, and (B) User Engagement.
Content represents a small part of any internet hosting expense for a platform and represents almost 100% of the platform’s ability to generate money. User engagement on the other hand, costs massive amounts of money – due to the need for data processing to handle the engagement and simultaneous users – and provides almost no revenue.
Many news and information content providers do not even host a user engagement commenting system any longer. User engagement is just too expensive and requires monitoring, moderation and massive amounts of data processing space on the platform servers.
Twitter’s operating model only consists of ‘user engagement.’
The platform itself is a massive global commenting system – the ‘public square’ discussion.
♦CONTENT is the material that can be monetized easily. Content is the article, graphic, podcast, or video you would see and watch. Content is profitable based on advertising. Eyeballs on content means eyeballs on internet advertising. This is how websites and content providers are able to pay for expenses and operate as a business model for the continuation of content. Hosting costs for content, even on a massive scale of viewership/readership are low, and the income from advertising increases with more readers and viewers. This is the traditional business model of content providers.
♦USER ENGAGEMENT is the part that is not as easily monetized, and user engagement drives a higher cost. User engagement is the comments, likes, dislikes and discussion that takes place based on the users who view the content material and discuss. More user engagement, particularly more simultaneous users, costs more money for the platform, because the random capability of the audience to interact with the server network creates exponentially more data processing demand. Data processing, not capacity, drives the cost.
Server capacity is a relatively easy issue to solve for content providers. In order to see the content, the host needs to ensure they have enough capacity for the audience to arrive and view, read, or watch the content without overwhelming the server network. Server processing speed and data performance are a part of the construct to ensure everything is smooth.
Server capacity is not the challenge for ‘user engagement.’ Processing trillions of simultaneous user-activated functions is the tech challenge for ‘user engagement.’ It’s not the capacity, it’s the data processing. As a result, it is far more expensive to operate social media than it is to operate a simple website construct, because user engagement is the entire premise behind social media.
Facebook and Instagram have a more viable business model because users provide the content they host. Content can be monetized, and in the case of Facebook, Google, Instagram and YouTube they can also monetize the user that provides it. Twitter does not host content at all.
Facebook makes money by selling advertising like a traditional website. Facebook and Google have also specialized in the micro-targeting of advertising to very specific tailored advertising audiences. Advertising agencies pay a premium for the micro-targeting of a specific audience.
Facebook also makes money by selling data on users. You may remember the reference of Cambridge Analytica purchasing micro-targeting user information from Facebook for use in elections and voter targeting efforts. More recently, Facebook has cut out the middlemen and started micro-targeting for politics and getting paid directly by political campaigns for their efforts.
In almost all social media, the user is providing the content that the platform can monetize. In the Facebook example above, the platform can offset the extreme increases in user engagement costs (data processing) by making money from the hosted content, and from selling the data of the user (there are many purchasers).
However, for Twitter the business model problem is: (a) the absence of content to monetize, and (b) the extreme costs of user engagement that dwarf the “simultaneous user” data processing costs for Facebook.
As Facebook grows, they can grow their revenue. As Twitter grows, it increases their expenses massively and only moderately increases their revenue.
Twitter is not making a decision to decline the generous offer by Elon Musk because of stewardship or fiduciary responsibility to shareholders. The financials of Twitter as a non-viable business model highlight the issue of money being irrelevant. Twitter does not and cannot make money. Growing Twitter only means growing an expense. Growing Twitter does not grow revenue enough to offset the increase in expense.
There is only one way for Twitter to exist as a viable entity, people are now starting to realize this.
What matters to the people behind Twitter, the people who are subsidizing the ability of Twitter to exist, is control over the global conversation.
Control of the conversation is priceless to the people who provide the backbone for Twitter.
Once people realize who is subsidizing Twitter, everything changes.
That’s the fight.
.
The initial 9% share purchase, to the Board of Directors talk, to the reversal on the BoD due to the limits that position would set on Musk, to the complete take-over offer all seem part of a Musk plan. An offer to purchase Twitter outright does not get put together by lawyers in a few days before the Easter weekend.
The end game to me would be to force the news to cover the back and forth, force the Board to keep him out despite the popular public shareholder value he would bring, and force a schism between Board and shareholders. He is now in a position to lead a share-holder lawsuit vs the Board which will shine sunlight on exactly who is really pulling the strings at Twitter.
My sentiments exactly. Again you are mostly right.
Musk may now target large shareholders to sell/partner the deal, but I suggest we crowd source the takeover. Does Musk want to partner with other billionaires or join a coalition of small investors buying shares on the open market and offering them for sale to Musk (at a small profit).
I was first educated about proxy fights when running for office at my local credit union around 3 decades ago. Perhaps proxies can also be a weapon to consolidate the masses through the Musk lens.
We can wield a lot of power with money and debt. Up to us though. We have to choose.
Crowdsource??? LOL. You know 40,000 people with a million dollars each? or 40 million people with a $1000?
When you say it out loud, why would anyone want this expensive piece of trash? Hmm
Really, only 2 ways to do it? How about 5,000 Patriots willing to continuosly cycle transactions until April 15, 2023? You do understand high speed computer trading?
I know 300 million who pay thousands of dollars to have a government pull such shenanigans.
excellent analysis
and encourage a 50% discount of the stock to us.
Listening to people fight over Twitter is like listening to heroin addicts fight over their dealer.
I watch people still using that trash and it’s like knowing your sister is getting beat up by her husband and being unable to do anything about it because she won’t just leave the SOB.
good analogy time to beat the crap out of the husband/dealer, both are vermin.
Wait ’till this goes to court. The things that will be exposed. I mean those who will be. Down she goes.
🤔Maybe. Hopefully.
👉 Too many invested Globalist users, Globalist Corporations and Globalist Governments 👈
😳Maybe there won’t be any real judicial transparency. Stolen election from President Trump proves that real Government investigating transparency is NOT part of the process.
IMO, Twitter is actually under the thumbs of either, or, and the DNC, DOJ, FBI. That is why they are refusing this offer of free speech. It would out the lot of them.
You forgot the CIA.
It is great that Sundance has the knowhow to figure out what is going on with Twitters’ “business model” and has the guts to share his knowledge. There are others in high places that know also but are either ok with the con or are scared to go public about it.
Forgive me, but I’m trying to stifle a yawn about this.
Maybe it’s going right over my head how dang important this is?
So the govt/oligarch/fascists don’t want to give up their megaphone?
What else is new?
How is this poison pill even legal?
IDK, another step along the path. IMO, to do it, meaning rid the country of tyrannical humans, peacefully will take generations. It’ll be worse than watching grass grow 0r paint dry. Excruciatingly slow, frustrating, maddening. Most of us currently alive will be dead by the time anything meaningful happens. That’s my prediction.
That’s the whole idea. Make sure that by the time the perps are exposed, both they and all those injured are gone. Let the history books indict the wrongdoers. By that time, nobody cares.
But–the idea is wrong. Pogo had it right: “We have met the enemy and he is us”. Ridding the country of tyrannical humans, or humans with a propensity toward tyranny, will never be accomplished this side of eternity. For that to happen, a basic change in human nature is necessary. Marx recognized this when he propounded that false religion of his. The only true way this can happen is to become a new creature in Christ.
Exactly my thought. How is this legal? If you sell stock at 50% of the going rate, don’t you dilute the price by expanding the number of outstanding shares? Doesn’t the board have a fiduciary duty to the stockholders? I doubt that fiduciary duty includes tanking the company to prevent a Musk buyout. And something else, if this scheme goes into effect, what prevents Musk from buying a lot more shares at a massive discount? How can he be legally excluded?
THEY SEEM TO NOT GIVE A F ABOUT THE SHAREHOLDERS. IT’S ALL ABOUT POWER TO PREVENT THE TRUTH FROM BEING EXPOSED.
Stock holders need to sue the board of directors back to the stone age.
or buy more stock at a 50% discount.
This goes deeper than stock holders. Musk didn’t get to where he is by being dumb or ignorant. This man knows exactly what the story is or he would not have sunk all that money in blindly! He’s aware of their every move or possibilities. I’m enjoying my popcorn just waiting to see how they are going to slit their throats! Go Elon!
I saw an interview with Musk. He was asked if he had a plan B if this failed. He paused a few moments before saying: “Yes.” When asked to reveal it, he said “This isn’t the time”.
My first thought is, how can the Board of directors treat one shareholder different than all others? All other shareholders can buy half price shares except Musk … and where is equal protection under law?. Fiduciary smuduciary , we can come back to that later.
This is an excellent article explaining the catch 22 that the Twitter business model has and this is precisely what Musk would change as the new owner of Twitter.
Let’s say Musk changes the primary income stream from advertising to charging Blue checkmarks $2.50 or $5 per month to offeset the costs of maintaining the system. Anyone can get a checkmark with the proper verification and suddenly no more adverts effecting free speech and no more psychoctic bot accounts? Twitter would drastically mutate into a new experience of real free speech. Bring back popular accounts let everyone participate and voila …. a new Twitter.
Tparty
Patriots could participate the ownwership transition from Vanguard and Blackrock by buying shares on the open market, as it goes down following this poision pill, and sell them directly to Musk. Crowd source the Twitter takeover?
Aren’t Vanguard and Blackrock just the financial arm of said government?
Election Wizard 🇺🇸
@ElectionWiz
NY POST: Elon Musk considering bringing in partners on Twitter bid, sources say
6:16 PM · Apr 15, 2022
**********
Elon Musk considering bringing in partners on Twitter bid, sources say
https://nypost-com.cdn.ampproject.org/v/s/nypost.com/2022/04/15/elon-musk-considers-bringing-in-partners-on-twitter-bid-sources/amp/?amp_gsa=1&_js_v=a9&usqp=mq331AQKKAFQArABIIACAw%3D%3D#amp_tf=From%20%251%24s&aoh=16500659046000&referrer=https%3A%2F%2Fwww.google.com&share=https%3A%2F%2Fnypost.com%2F2022%2F04%2F15%2Felon-musk-considers-bringing-in-partners-on-twitter-bid-sources%2F
🍿🤔🍿🤔🍿
Hi Landslide.
Agree. Quite interesting. 🤔
Hey there, neighbor!👋🏻
Hahaha- I want the GameStop troublemakers! Bring them all- let’s see that share price get volatile. LOL
In todays environment if he does have sponsors why would he want to name them. How would that benefit us ?
Nice try troll.
Heh, comes with being over the target. Nice to see them stop by and vent their spleens.
OTOH, PDJT is still banned from Twitter. No mean tweets. Think of the pile of cash his user engagement bill was costing them every day. Monumental! 😀
Come on, like the troll’s post. It’s Good Friday 😉
LOL!
LoL, try seething harder, then dialate some more.
Perhaps someday you’ll understand.
@ Just V ile, in life you don’t always get what you want just because you screech like a skidding tire.
CNBC was flapping about the poison pill technique all day after Elon made an offer…
who buys the 50% discounted stock and combines it all to have more stock than Elon?
Who sells the shares at 50% discount?
The shares are issued from company Treasury. ie. New shares are authorized , not from existing shareholders selling their shares.
Why do conservatives waste time on twitter? Go to a real free speech site=GAB
Or better yet President Trump’s platform.
I don’t pay to get on any social web site! FB is history with me, Twitter is at the tipping point. Rumble is all I have left. Utube is long gone!
It’s called Truth Social.
Why? Twitter is where the masses are. If you want to get your message out, you want as many people to hear it as possible, not just a small group of like minded people.
If what Sundance says about Twittee is true, how does Torba expect to turn a profit? He reached out to Musk for $2 billion.
Seems it is also a poison pill defense to the shareholders’ claims against Musk.
if they trigger the buy at half price, the dumbasses just let Elon’s shadow friends purchase their stop at a 50% discount – then team and boot the current board.
complete embarassment they are going through right now. the media talk is to shape the NARRATIVE not the reality so that they can do something ILLLEGAL to defeat the legal asskicking coming.
you are in a world where – the Law has a LIAR controlling it at every interface.
Interesting timing.
Twitter’s annual stockholders meeting is May 25 at 10:00 a.m. . (https://investor.twitterinc.com/events-and-presentations/annual-meeting/) Webcast available 15 minutes beforehand.
Dr. Shiva gave a stunning presentation of his experience suing Twitter and what he discovered. What Dr. Shiva discovered through documentation discovery was that Twitter has hotlines set up to every state government and federal government agency to allow immediate reporting of statements of individuals that irritate the government. This allows a quicker censorship response by Twitter.
In other words, Sundance’s suspicions that Twitter is funded and controlled by NGO’s acting as proxies of the government could very well be true.
Already there is a report that the US Army Corps of Engineers have denied a SpaceX permit for expansion in Texas citing environmental reports that were not submitted. Coincidental no?
yes.
and people think each username is a human being. huge flaw.
bot armies designed to say simple – comments – can be sent to sting a target and get a response. the response is then silo’d like grouping people of each ideology.
2) 2nd kill mode to twitter is the Impression Building utilzing millions of fake accounts and boosting a threat to make people think THAT IS WHATS GOING ON.
twitters is a MINDSHIFTING Tool – CyptoPublicRelations
Bingo! One truth is Twitter cannot financially exist/survive on its own. It requires the financial backing of “the full faith and credit” of this US government. The second most often overlooked fact about Twitter is at least 1/4 or more of it users are bots.
It’s an alternative reality meant to shape public opinion completely uncoupled from the truth
Yes, research he originally got from me, that I have also been reporting here since Nov 2020.
I think Twitter isn”t the only one that this applies to. Yahoo News was the first one that
I noticed this phenomenon on. As soon as anything started gaining traction that benefited
conservatives, Yahoo News had some almost instantaneous article to refute it.
The same applies to late night propagandatainment. The inks isn’t dry on whatever the
opposition says to the narrative, and the ATTACKS !!! begin.
Lastly, pay attention to the number of bots, er “views” of any late night approved talking
points, er “monologues” that Colbert, Seth Myers and the rest have. Always at 2 million
plus. I call bullshit, because it happens again, and again, and again, and again, and……..
again.
Look at these shows actual viewership, then compare it with 2.8 million “views”. I think
that the feds have done the same thing here as what SUndance discussed a few days ago
with their Twitter tweaking.
By inflating the numbers, they inflate the suggested “searches”. By doing so, they validate
the narrative, and make it appear that anyone in opposition is the guy standing out in
the middle of the desert.
The actuality is the exact inverse of that. If we start putting that thought in people’s
minds, and ( god forbid) make them actually think, we might have our own
“Great Reset”.
We have met the financers and it is us.
I think the monetized value of Twitter is being misunderstood… It’s value is in the data that’s mined.
People are too naive about what data does and what it’s capable of doing.
how are people being mined?
Just V, Who is paying you to post here? If you are an honest poster you will let us know who sent you out on this mission. Read here awhile and you might learn something.
i cant imagine someone coming here as a new person and commenting right away.
I took years.
Next week will probably be a laugh fest now that Twitter’s D&O insurer has pulled the plug on their policy.
Elon Musk is no longer Twitter’s largest shareholder and says he’s ‘not sure’ his takeover bid will be successful
Excerpt:
Elon Musk has lost his position as Twitter’s largest shareholder as he attempts to buy the company in a $43 billion deal.
The Tesla and SpaceX boss said in early April he had become Twitter’s largest shareholder, having built a 9.2% stake in the micro-blogging platform.
But he has now lost the top spot: An asset manager at Vanguard Group said in a filing submitted recently to the Securities and Exchange Commission that, as of April 8, its funds now own a 10.3% stake in the company, which is worth $3.6 billion as of Friday’s close.
The filing shows Vanguard increased its stake in Twitter over the course of the first quarter.
https://www-businessinsider-com.cdn.ampproject.org/v/s/www.businessinsider.com/elon-musk-is-no-longer-twitters-largest-shareholder-2022-4?amp=&_gsa=1&_js_v=a9&usqp=mq331AQIKAGwASCAAgM%3D#amp_tf=From%20%251%24s&aoh=16500382127562&csi=0&referrer=https%3A%2F%2Fwww.google.com
No biggie. Anything short of >50% is not large enough.
And I for one appreciate Musk’s candor. There is no certainty in a thing like this. It ends how it ends.
Musk is the largest individual stock holder, of Twitter. Vanguard is investing thousands or millions of peoples money. The big question is, do the decision makers at Vanguard have a fiduciary responsibility to the investors they represent to sell at a very handsome profit? Musk has offered Vanguards clients a huge profit.
Is this a hint from someone who might join Elon in Plan B??
Now I understand why Lerner’s IRS could only provide access for a few emails for each agent – all the government server space was tied up for Twitter.
Directors have fiduciary duties of loyalty and care to the company and its stockholders. Duty of loyalty. You must put the interests of the company and its stockholders over your own personal interests in making decisions for the Company and evaluating opportunities. I’m no stock whiz, but it sounds to me like the Twitter Board is violating their fiduciary duty to the stockholders.
Sure, but who ultimately decides that? A CIA judge?
so sundance, who is subsidizing twitter? the cia? the mossad? (some overlap) the owners of the fed? the dnc?
in your opinion, who?
Twitter is not friendly to Israel, so I doubt Mossad would subsidize it. They’re probably rooting for Elon.
Where do these poison-pill discounted shares come from?
Printed by the company. They cause massive dilution of shareholder equity. Poison pills are fairly common, but are normally in place long before anyone ever even thinks of making an attempt to buy the company. As a result, no one ever does that, because they see that a Poison Pill is in place. Thus, the poison pill never gets triggered.
I was in the securities business for 30 years and I cannot recall any example of a BOD doing this the way the Twitter Board did, AFTER a firm offer to buy had been made. The BOD is setting themselves up for massive shareholder lawsuits.
David Sacks
@DavidSacks
Instead of accepting Elon’s premium to the share price, Twitter’s board is planning to dilute the company by giving insiders a sweetheart deal. This is a blatant violation of fiduciary duty and should be illegal.
David Sacks
@DavidSacks
I’m purely speculating here: the poison pill starts at 15% so what if 2 partners buy 14.9% each and a third buys 5.4%? That’s a majority. Let the firings commence.
2/. Alternately, what if everyone who believes in free speech decides to swarm the stock, meme-stonk style, with a view to proxying the shares later on?
8:06 PM · Apr 15, 2022
Rules are only rules if they are enforced.
The dRATS make up their own rules all the time. Then if the GOP try to play by the rules the dRATS made up, they cry foul and get the media to echo and act as umpires. If the SEC doesnt enforce the rules then who to say something is illegal..the courts, we see how reliable they are. All these gov agencies are infiltrated and favor the dRATS as are the courts. Election cycles are unreliable when you have the GOPe and Uniparty. We need a new government or break up the country, we cant continue to operate this way. The dRATS cheat, lie and have flooded our boarders with new voters. Time for drastic change.
BREAKING: Twitter’s Board Refused to Allow Shareholders to Vote on Elon Musk’s Buyout — May Now Be Sued
https://trendingpolitics.com/breaking-twitters-board-refused-to-allow-shareholders-to-vote-on-elon-musks-buyout-may-now-be-sued-knab/?utm_source=ElWiz
Election Wizard 🇺🇸
@ElectionWiz
If Elon gets control of Twitter, the biggest losers *might* be the FBI, CIA, and NSA.
8:43 AM · Apr 15, 2022
Pedro L. Gonzalez
@emeriticus
It’s fine that BlackRock and Vanguard Group—two of the world’s largest asset management firms—hold significant shares in both major defense contractors and mainstream media organizations.
But it’s not OK that Elon Musk wants to buy Twitter and reduce censorship on the platform.
9:40 PM · Apr 14, 2022
“Sue baby, sue — twitter inferno …”
This is dangerous for Musk. The dark secret is that twitter is funded and runs on US gov servers. It’s controlled by the deep state.
Facebook also, they were created as the ultimate spyware to know everything about the citizens. It was developed by Darpa under the name lifelog. They supposedly shut it down in Feb of 2004… funny thing Facebook launched right after in 2004.
https://www.wired.com/2004/02/pentagon-kills-lifelog-project/
The Pentagon canceled its so-called LifeLog project, an ambitious effort to build a database tracking a person’s entire existence. Run by Darpa, the Defense Department’s research arm, LifeLog aimed to gather in a single place just about everything an individual says, sees or does: the phone calls made, the TV shows watched, the magazines read, […]
https://en.wikipedia.org/wiki/Facebook
Facebook is an American online social media and social networking service owned by Meta Platforms. Founded in 2004 by Mark Zuckerberg
Musk is likely not a white hat. His wife appears to be non-human. We are living in what the Bible describes “as in the days of Noah”
In other words the end days are upon us, featuring lawlessness, idolaters, boasting, reprobate homosexuality normalized, great delusion, and haters of truth. There are also significant dark spiritual forces/beings at work. Seek Jesus as your savior, repent of sins and turn your life over to the master, this is all temporal, and our treasures in heaven are eternal.
What a putz Max Boot is, at the Washington Post. He says “more moderation is needed, not less”! Max doesn’t want free speech, he wants far left liberal hacks moderating your speech! IMO, Max should move to China, if he favors “more moderation”!
Newly offered shares. They’re creating paper [money/shares] just like the Fed creates paper [money/dollars] by fiat.
They can legally offer these shares to anyone.
How they can legally exclude any existing shareholder, like Musk, exposes the unholy alliance that is The Government and The Board, proving that it’s The Government ILLEGALLY abridging your [Constitutionally protected] Gid-given Right to Free Speech.
This is what Elon is exposing.
I can’t see how Elon doesn’t see that. I also think he fully expected something like this Poison Pill reaction. What he is doing I believe is creating turmoil in the price of the stock so that he can buy and sell in such a manner and time to raise the amount of money he has invested. Yes, he also would’ve hoped they’d go along or perhaps that a partnership may gain control but I would bet that his worse off position is that Twitter now loses stock price and he can buy it and wait for a rise or it rises and he can then sell and make millions off a couple of stock actions. And he can do that a few times buy making comments and inciting offers that raise or lower the price and also his actions and Twitters reactions will demonstrate to even the least involved of why investing in Twitter and/or being a user is a losing deal. And that too may be one of his plans. Perhaps he’s offered Trump some investment money but first he’s going to make some off Twitter and play some games with them leaving the field mover open to Trumps possible move. And your explanation about the user cost is also an explanation of why Trump has been slow to come out with a social media plan because they haven’t found a way to either operate it cheaply or monetize it so they’re stuck with the losses just like Twitter.
https://rightwirereport.com/2022/04/16/truth-be-told-podcast-unconventional-musk-et-freedom-shot-heard-round-the-world-april-16-2022/
What’s that old saw about “free markets”?
This impacts not only Twitter shareholder, but ETFs, mutual funds who hold the stock, etc. it’s time to sue the board and all of it executives into poverty.
USG… why? Major psychological obedience training to control the populations mindset.. cradle to grave.
So… the platform does not scale and does not produce revenue. Maybe that’s what Trump’s Truth Social is starting to realize that there is no way to make it self-sustaining. They might be stuck with the thought:” but, it works for twitter”.
This poison pill is the reverse of a trick usually used on penny stocks, where a company ‘reorganizes’ and removes a portion of their total number of shares to artificially inflate the stock price, for instance they issue/exchange new shares at 1:2 one new share for 2 old shares but the new share is at twice the price to current shareholders so the total valuation remains the same.
In this case they are deliberately destroying shareholder value by diluting the stock and inflating the treasury and offer nothing to current shareholders as compensation for loss of value unless they offer to double everyone’s number of shares(including Elon’s) which not only gets them in trouble with their current shareholders but with the SEC as well as the stock exchanges they’re listed on.
One trick around this is to prepare to severely short Twitter just before you reach the 15% limit which triggers the poison pill.
If Musk shorts at say $40, reaches the 15% limit which triggers a deluge of new shares at $20, he then buys up the new shares at $20 to cover and makes $20/share in the short sale, he could also buy up more shares at $20, unless these new shares are a private placement or different class of stock, any open market shares he could simply buy up.
This would cover much of Musk’s position and limit potential losses and he might even acquire more stock at cheaper prices.
The most likely thing to happen will be that twitter’s stock will be suspended for investigations and the lawsuits will be flying if they enact the pill.
What this will do is tank Twitter stock price to the point of where there might an audit of the company’s financial and accounting practices as part of a shareholder lawsuit, something the real backers of Twitter do not want happening under any circumstances.
This plan is a short seller’s dream.
Just a thought.
I read an interesting story at the American thinker last week that the author thinks the CIA is running Twitter
I wonder why no one has set up a system to charge commenters to comment per post?
Such a system would definitely discourage trolls and some shills who don’t have the budget to push their unwanted comments.
Overall charging the user directly would act as a powerful disincentive to participate in any conversation and negating the reason for ‘social’ media and turning it into anti-social media.
One proposed way to offset some of these costs would be per tweet advertising, the more popular a tweet the more likely it will have ads attached to reach a wider audience.
Otherwise as Sundance as has pointed out Twitter is apparently floating in the air without any visible support adequate to keep them operational.
Musk just kicked over the hornet’s nest and we are seeing some interesting results.
Could Twitter traffic bring prospects of other type of trafficking? Not that people on the board would use it for these reasons.