Analyst on Musk’s Twitter offer: ‘No board in America will take that number’
However, an analyst said that if the Tesla CEO was serious about taking over the social media company, the offer would have to be reconsidered.
“No one believes this is the final price. No board in America would take that number,” said Brent Thill, a Jefferies analyst.
Shares of Twitter rose 4% on all-cash offer news before falling in Thursday afternoon session. In the revised SEC filing, Musk wrote his proposal to pay $ 54.20, a 54% premium on the stock, compared to the price the day before he started investing in the company.
But in the comments at TED2022 Musk expressed skepticism over his plan to take Twitter privately, saying, “I’m not sure I can really get it.”
“The purpose is to retain as many shareholders as possible by law in a private company,” he said. “So, it’s definitely not from the point of view of how I’ve monopolized or maximized my ownership on Twitter.”
Musk said his move was not about finding a way to “make money”.
“I don’t care about economics at all,” he said.
Regardless of Musk’s intent, Thill said his offer would not be added to the Twitter board because the billionaire did not explain how he wanted to “transform” the company. Thil also suggested that Musk use the number “420”, a popular reference to marijuana, as “borderline unprofessional”.
“It has nothing to do with the 420, well, take it. Bring the bid to $ 60, and then build a structured structure around how they will implement it, “Thil said.” Then maybe, maybe, but it’s going to take. ”
Twitter publicly accepted the takeover offer on Thursday, Said in a statement It plans to “carefully review the proposal to determine the course of action of trust for the best interests of the Company and all Twitter Stockholders”.
But behind the scenes, the board considered the offer “unwelcome”, indicating that it was ready to fight back. According to the information.
The potential war came five months after new CEO Parag Agarwal took the lead from Twitter co-founder Jack Dorsey last fall. Thill said Musk’s offer could open the door for other bidders interested in the social media company, although Washington’s increased antitrust scrutiny against large tech companies could prevent it from concluding any deal.
“It’s very difficult, because the government is going to say no to any big deal even if the rest of the technology wants to do it,” Thill said. “It’s hard to see who the next logical player will be.”
Akiko Fujita is the anchor and reporter for Yahoo Finance. Follow her on Twitter @AkikoFujita
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