Tesla CEO, Elon Musk can now acquire additional Twitter shares, now that he is no longer taking a position on the platform’s company board, according to a securities filing on Monday. The abrupt roll back over the board seat over the weekend kindled renewed speculation about Musk’s intentions for Twitter since Musk first disclosed, he had taken a stake of just over 9% — becoming the corporation’s largest individual shareholder.
Elon Musk Can Initiate a Hostile Takeover of Twitter by Acquiring More Twitter Shares
Moreover, by not taking a board seat, Musk is no longer subject to an agreement to keep his stake below 14.9%. Twitter shares gained 1.7% on Monday in New York. As per the filing with the Securities and Exchange Commission, Musk has no “present plans or intentions” to obtain additional Twitter shares, but “reserves the right to change his plans at any time” after considering various factors including the stock price and the “relative attractiveness of alternative business and investment opportunities.”
If Elon Musk wishes to make a full takeover offer, he can make a hostile bid for the corporation, and take his bid directly to shareholders. Twitter’s growing share price since Musk first disclosed his position in early April makes any further stake-building increasingly costly. However, the billionaire can afford it. He’s presently worth about $260 billion according to the Bloomberg Billionaire’s Index, compared with Twitter’s market valuation of nearly $37 billion.
Musk Suggests to Turn Twitter’s San Francisco Headquarters into a Homeless Shelter
Furthermore, Elon Musk has been vocal about changes he’d consider on the social media platform. Musk wasted no time in appealing to users about future moves from turning Twitter’s San Francisco headquarters into a homeless shelter and releasing an edit button for tweets, to presenting automatic verification marks to premium users. One tweet pointed out that Twitter might be dying, given the fact that several renowned people with high numbers of followers rarely tweet.
Source: The Verge