According to Yahoo Finance, Daily Mail and other reports on the 11th, after becoming a major shareholder of Twitter at the beginning of last week and officially announcing that he would assume the position of director of the company, Musk suddenly decided not to join the board of Directors of Twitter, which is very Musk! At the same time, it has led to speculation that he may be retreating to prepare for the next acquisition of the social media platform. Analysis suggests that he, who currently owns 9.2 percent of Twitter, needs at least another 40.8 percent to become a majority shareholder with absolute decision-making power, which will cost him another about $15.3 billion.
Not getting into the board is a problem!
Musk reportedly revealed last week that he had become Twitter's largest shareholder on March 4, and a day later, Twitter's current CEO, Parag Agrawal, announced that Musk had been invited to the company's board of directors, and he also gladly accepted the seat, provided that Musk's stake in Twitter was capped at 14.9%.
However, the plot takes a 180-degree turn on the same day. Agravar announced on Twitter on Sunday night that Musk had turned down the offer.
Agravar announced on Twitter sunday night that Musk had declined an offer to join the board.
Meanwhile, Musk also filed a new filing with the U.S. Securities and Exchange Commission (SEC) on Monday, indicating that he has declined to sit on Twitter's board.
Musk can "express his views on his policies and services" to the board or the platform, and that he "currently has no plans or intentions to buy additional shares or sell existing shares," but that he "reserves the right to change plans at any time he deems appropriate," the documents said.
Musk filed a new filing with the U.S. Securities and Exchange Commission (SEC).
Retreating or preparing for an acquisition?
Wall Street analysts believe that Musk's rollercoaster on the issue of joining Twitter's board may be in preparation for the hostile acquisition of Twitter and seeking more control over the company.
"It's obviously a very unfriendly situation," said securities analyst Dan Ives, "and in the coming days I think we're going to start seeing if he's going to get more hostile." ”
"Musk went from passive to aggressive, and there's no longer a limit to the number of shares that own Twitter, and he seems crazy," said Alex Cantrovitz, a veteran technology journalist and writer. ”
However, some analysts believe that Musk will not spend more time on the acquisition of Twitter because he has too many things to manage. Gene Munster, managing partner at Loup Ventures, said he thought "most of the drama was over" and thought it would be a wiser decision if Musk intended to make the acquisition immediately.
Another $15.3 billion? Little Case
So, if Musk really wants to buy Twitter, how much does he need to spend?
According to Yahoo Finance, Twitter currently has 800.64 million shares outstanding, and Musk needs at least an additional 40.8% of the company to become a majority shareholder with absolute decision-making power.
Currently, Musk holds a 9.2 percent stake in Twitter, totaling 73.4 million shares worth about $3.4 billion.
To get 50 percent of Twitter's stock, that means he needs to buy about 400.32 million more shares worth about $15.3 billion.
At present, Musk is firmly on the throne of Forbes' richest man in the world with a net worth of $302 billion. $15.3 billion should be a small case for him.
Twitter shares fell more than 8 percent in pre-market trading on Monday as News of Musk's refusal to serve on the company's board of directors, but then quickly recovered to $47.51.
Upstream News Mawtan Compiled