It’s been a wild month of news for the social network we collectively love to hate. In early April, Elon Musk took a bite out of Twitter, taking 9.2% of the company and plans to exert his influence over the company through his board. After he backed out of his planned board seat, Musk came up with an even more outrageous plan: He would buy the company outright and take it private. Absolutely everyone freaked out about it and had an opinion and some of those opinions cast doubt on the seriousness of the famous tech mogul’s grand plans.
Musk’s $43 billion bid valued Twitter for less than it was traded a year ago, begging the question: is this guy real? We still don’t really know – Musk is mercurial and notoriously prone to big dumb stunts – but apparently he’s scraping together the money with some help from Morgan Stanley and Bank of America.
Musk is the richest man in the world, but he’s also relatively cash-poor for a mega-billionaire, so making his move on Twitter would require him to cash out shares held in Tesla and SpaceX, the two companies he ostensibly runs as he takes us. to a frenzy about his totally unnecessary ambitions to buy Twitter and reshape it in his image. Meanwhile, Twitter is working to fend off Musk’s advances with a poison pill defense, which would allow existing shareholders to buy more shares at low prices, effectively diluting the company’s shares and driving up the price of its offering.
Because it’s Musk we’re talking about, no one knows what happens next, but here’s what’s happened so far. We will provide updates as the story continues to unfold.
A timeline of the Elon Musk-Twitter saga
1. US Regulators Said Someone Should Really Monitor Elon Musk’s Tweets
Even before Musk made an offer for Twitter, SEC regulators said they have the authority to subpoena the Tesla CEO about his tweets and even asked a federal judge not to let the executive tweet with abandon.
2. Elon Musk Tweets That He’s “Seriously Thinking” About Building His Own Social Media Platform
Shortly after US regulators asked a judge to monitor Musk’s tweets, the Tesla and SpaceX CEO expressed that he was seriously considering building the ‘next Twitter’.
3. Elon Musk buys 9.2% of Twitter on April 4
Twitter posted a note confirming that the SpaceX and Tesla entrepreneur took a 9.2% stake in the company, coming in at about $2.9 billion based on Friday’s (March 4) stock price.
4. Elon Musk gets a seat on Twitter’s board the next day, April 5
Twitter CEO Parag Agrawal announced that Elon Musk has been named to the Twitter board in a series of tweets:
5. In major reversal, Elon Musk will no longer be on Twitter’s board, announced April 10
Later that same week, Twitter CEO Parag Agrawal announced that he would not be joining the social media company’s board. Agrawal’s disclosure follows a series of offbeat tweets from Elon Musk over the same weekend in which he asked aloud to his more than 80 million followers if Twitter was dying, citing the low frequency of tweets from some of the most popular personalities. popular on the social network.
6. A Twitter Shareholder Sues After Musk Fails to Promptly Disclose His Huge Investment in Twitter
A Twitter shareholder sued Musk in a federal securities class action because Musk failed to disclose his 5% stake in Twitter when he was required to do so. The delay allowed Musk to buy more Twitter stock at a lower price and trick Twitter stock sellers to increase profits, the plaintiff claims.
7. Elon Musk Offers To Buy Twitter, The Whole Company, For $43 Billion On April 14
The billionaire said he is willing to pay $54.20 a share to buy 100% of the company. It would be an all-cash offering that values the social network at $43.4 billion. He submitted the offer to the SEC and tweeted it hours before being interviewed on Ted.
8. Elon Musk does a Ted interview hours after Twittering his big offer
The controversial CEO of Tesla and SpaceX was already preparing to speak at the TED2022 conference for a conversation that was so sought after that TED made the live broadcast available to the public.
9. The next day, April 15th, Twitter’s board turns to the defense they’ve all been waiting for: the poison pill
Twitter’s board of directors announced in a press release that the company is adopting a limited-duration shareholder rights plan – a “poison pill” in merger and acquisition jargon. While the company doesn’t name Elon Musk directly, Twitter is clearly trying to stop the billionaire from buying the social network.
10. Elon Musk Explains How He Would Fund His $43 Billion Twitter Offer
To summarize: Musk intends to borrow about $13 billion in various ways; borrow $12.5 billion against its own equity holdings; and pay about $21 billion of its own holdings. It’s a rather complicated collection of funding sources, but Musk’s supply isn’t small, so the path to collecting the necessary cash in a pile is understandably tricky.