> 1. selling that much stock will dent investor confidence in twitter.
I don't understand this bit. It's just Elon selling his own shares that he just bought, why would that affect investor confidence? Nothing's changed about the company itself, so the price would just go back to where it was.
> It's just Elon selling his own shares that he just bought, why would that affect investor confidence?
It could be read by a layman as "He spent a bunch of money, got a look at the internals and realized it was a bad move". In fairness it could also be interpreted as "He just fickle".
Because he bought it with the assumption that his offer would be accepted and he could improve the company. Rejecting his offer opens the door to a world in which Twitter is worth less than what he paid for it: from both Musk's perspective, as well as that of others.
It depends on why the offer is rejected. You can say "we think its worth more than that" but if your stock is trading $30 down afterward your investors might have an interesting case about your fiduciary responsibility to them.
I don't understand this bit. It's just Elon selling his own shares that he just bought, why would that affect investor confidence? Nothing's changed about the company itself, so the price would just go back to where it was.