Elon Musk has Twitter’s embattled board and administration staff by the, properly, you already know what.
The Tesla CEO, who has a 9.2% stake in Twitter, provided to purchase the social media platform for $54.20 a share. Twitter confirmed in a press launch that it acquired Musk’s supply and mentioned the board of administrators “will rigorously evaluate the proposal to find out the plan of action that it believes is in the most effective curiosity of the Firm and all Twitter stockholders.”
The underside line is Twitter’s board has three selections.
First, the board — led by new Salesforce co-CEO Bret Taylor — might both settle for Musk’s particularly reasonable bid and drive certainty of worth for shareholders after many lengthy years of struggling and letdown.
Selection two, it might rebuff Musk and watch as he dumps his complete stake within the firm. In flip, that may doubtless put materials downward stress on Twitter’s inventory value given the general public considerations Musk has expressed on Twitter’s enterprise.
Selection three you ask? A set of steak knives.
“I imagine for the board, Musk is their worst nightmare. They settle for the bid or go across the globe in search of one other one,” mentioned Wedbush analyst Dan Ives on Yahoo Finance Stay. “Musk will not be going away.”
Twitter shares had surged 13% in pre-market buying and selling. However the inventory fell barely within the early afternoon on fears Twitter would rebuff Musk’s supply, he would dump his stake and ship the share value reeling.
And because the share value most likely goes into free fall, Twitter could possibly be slapped with lawsuits from shareholders who’re sad with the board’s resolution.
As Ives added, it is time to “get away the popcorn.”
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Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Observe Sozzi on Twitter @BrianSozzi and on LinkedIn.
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