The Tesla and Spacex boss offered the social network for $ 44 billion. An acquisition that divides Democrats and Republicans, the first seeing a threat to democracy when the latter hope for a rebalancing in their favor.
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ELON MUSK, the richest man in the world, will offer Twitter for $ 44 billion (€ 41 billion). The Board of Directors of the Social Network finally accepted its offer, Monday, April 25, after resisted its assaults.
“I hope that even my worst detractors will stay on Twitter, because that is what freedom of expression means,” said Twitter the boss of the Tesla Automobile Company and Spacex Space Company. Known for its libertarian beliefs, ELON MUSK, 50, says redeem the company in the name of freedom of expression: “[it] is the foundation of a democracy that works and Twitter is the digital public place where are debated Vital issues for the future of humanity, “says Musk, who wants to bring out the scholarship the company to be alone master on board.
The entrepreneur of South African origin proposes to redeem the actions at a price of $ 54.20 in cash, a premium of 38% compared to the 1 Er April, day when he had revealed having acquired 9% of the company’s capital.
At that time, the Twitter action had not progressed a purse dollar since its introduction to Wall Street, in 2013. It is this low performance that rendered the situation of the supervisory board of Twitter, a 90% social network of advertising and unable to develop a satisfactory economic growth model despite its 217 million daily users.
The case immediately took a political round
“The skeptics who have not seen the Twitter agreement come to materialize first underestimated the combativeness of Elon Musk and his ability to ensure funding. Then they did not seize the aversion to the Risk of boards of directors who are afraid of being pursued or appearing incompetent if they do not act in the best interests of shareholders, “said Gary Black, Chicago Hedge Fund Hedge, The Future Fund.
It was unlikely to find a white knight at such a price or to hope for a quick lift of action by itself. As for the poisoned pill that the Council wanted to adopt to prevent Eon Musk from climbing beyond 15% of the capital by creating new actions, it was difficult to justify.
Aided with Morgan Stanley Business Banking, Elon Musk raised $ 25.5 billion in borrowing while he could mobilize up to $ 21 billion in personal funds. “The proposed transaction will offer a substantial liquidity premium, and we believe that it is the best way for Twitter’s shareholders,” conceded the Chairman of the Social Network Supervisory Board, Bret Taylor.
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