Elon Musk wants to buy Twitter, make it maximally trusted

It likely will work out, seeking a greater cost per share, or it may desire arrangements to ensure that the board stays independent of Musk, said John Coffee, a professor at Columbia Universitys law school and head of its business governance center.The board could adopt “poison pill” arrangements to offer more shares and water down the value of Musks holdings, if Musks stake grows to 10% or 15%, Coffee stated. A claim filed Tuesday in New York federal court declared Musk illegally postponed revealing his stake in the social media business so he might purchase more shares at lower prices.The U.S. Securities and Exchange Commission could penalize Musk for harming other investors by taking too long to reveal his buying up of Twitter shares, but its unlikely that it will do anything to stop a takeover, said Chester Spatt, a former SEC chief financial expert. “The mere truth of the offense around the disclosure does not imply that there was fraud,” Frenkel said.However, there is “plenty of fodder for an examination” into whether anyone with understanding of Musks share purchases traded in the stock before Musks public disclosures, Frenkel said.After Musk announced his stake, Twitter quickly provided him a seat on its board on the condition that he not own more than 14.9% of the companys outstanding stock.

In 10 days, Tesla CEO Elon Musk has gone from popular Twitter contributor and critic to the companys largest specific investor to a would-be owner of the social platform– a whirlwind of activity that might alter the service drastically given the sometimes whimsical billionaires self-identification as a free-speech absolutist.Twitter exposed in a securities filing Thursday that Musk has offered to buy the company outright for more than $43 billion, saying the social media platform “requires to be transformed as a private company” in order to develop trust with its users. It likely will work out, looking for a higher cost per share, or it might want arrangements to guarantee that the board stays independent of Musk, stated John Coffee, a teacher at Columbia Universitys law school and head of its business governance center.The board might adopt “toxin tablet” arrangements to offer more shares and dilute the value of Musks holdings, if Musks stake grows to 10% or 15%, Coffee stated. “I might technically afford it,” he said to laughs.Should Musk go through with his takeover attempt, he likely could raise the approximately $43 billion he requires, perhaps by obtaining billions utilizing his stakes in Tesla and SpaceX as collateral.Most of Musks fortune, estimated by Forbes to be nearly $265 billion, is connected up in shares of Tesla. A suit filed Tuesday in New York federal court alleged Musk illegally postponed disclosing his stake in the social media company so he could buy more shares at lower prices.The U.S. Securities and Exchange Commission could punish Musk for hurting other investors by taking too long to reveal his purchasing up of Twitter shares, however its unlikely that it will do anything to stop a takeover, said Chester Spatt, a former SEC chief economic expert. “The mere fact of the violation around the disclosure does not indicate that there was fraud,” Frenkel said.However, there is “plenty of fodder for an investigation” into whether anyone with knowledge of Musks share purchases traded in the stock before Musks public disclosures, Frenkel said.After Musk announced his stake, Twitter quickly used him a seat on its board on the condition that he not own more than 14.9% of the companys exceptional stock.

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