Since Elon bought his 9% stake, the value of Twitter increased.
He mentions selling his shares if the takeover is not accepted.
That would make him a lot of money!
His offer is also on the high side, this might make people bullish about twitter.
On the other hand, I do think he is genuinely interested in buying twitter.
But can't help to feel this might also be lucrative for him if the deal doesn't go through.
It seems like Musk has a love hate relationship public companies... That's why SpaceX is still private.
He's not going to be able to sell his 9% stake at the current price without the market reacting negatively. The share price would drop because of the immense selling pressure it would cause. Unless there is another billionaire wanting to eat up all those shares, the supply would simply overwhelm the demand which in turn causes the price to drop until the market was able to meet the supply.
Another thing that makes this take over hostile. If it's rejected, Musk begins to sell his 9%, the stock price tumbles... and share-holders will sue the board.
I don't see how they don't have a fiduciary responsibility to sell here.
I would argue that SpaceX is private due to its susceptibility to share price crashes. It is an event driven firm. Balance sheets matter, but a SpaceX share price would be just as influenced by a rocket blowing up on live TV (if not more)
This exactly. When you sell stock it’s not to some magic black box. There needs to be a buyer. And no buyer is going to buy billions of dollars of Twitter stock once Elon starts his fire sale.
His offer is also on the high side, this might make people bullish about twitter. On the other hand, I do think he is genuinely interested in buying twitter.
But can't help to feel this might also be lucrative for him if the deal doesn't go through.
It seems like Musk has a love hate relationship public companies... That's why SpaceX is still private.