- TWTR at $49.64
- Buyout at $54.20
- Easy 9%
TWTR at $49.64 ----buyout at $54.20 ----- Easy 9% ?
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lots of folks got long yesterday at the 'discount'
today they wonder why
today they wonder why
TSLA is down 12% today. If $800 breaks then TSLA will probably fall back to $700, the February low, in a hurry.
If $700 breaks, what are the chances Musk's financing to buy TWTR actually closes?
Probably close to 0%. The fact of the matter is the probability is almost certainly already 0%, and that is exactly why TWTR's board voted to accept Musk's offer, i.e. call his bluff.
The market action in TWTR shares is suggesting, strongly, that traders do not believe Musk will actually succeed in taking TWTR private.
The TWTR board already knows this, and so they called Musk's bluff. A brilliant move because TWTR's stock price is going to continue to fall along with the rest of the market and eventually will decline well below its all time low price of $13.74. The TWTR board did not want to become Yahoo 2.0 by refusing a high offer only to watch as the bids for their stock collapse. Yahoo, in 2008, famously turned down MSFT's $40 Billion offer. 8 years later YHOO sold itself to to VZ for $4.4 Billion.
TWTR's board did not want that same type of mistake pinned on them.
Must will never own TWTR.
If $700 breaks, what are the chances Musk's financing to buy TWTR actually closes?
Probably close to 0%. The fact of the matter is the probability is almost certainly already 0%, and that is exactly why TWTR's board voted to accept Musk's offer, i.e. call his bluff.
The market action in TWTR shares is suggesting, strongly, that traders do not believe Musk will actually succeed in taking TWTR private.
The TWTR board already knows this, and so they called Musk's bluff. A brilliant move because TWTR's stock price is going to continue to fall along with the rest of the market and eventually will decline well below its all time low price of $13.74. The TWTR board did not want to become Yahoo 2.0 by refusing a high offer only to watch as the bids for their stock collapse. Yahoo, in 2008, famously turned down MSFT's $40 Billion offer. 8 years later YHOO sold itself to to VZ for $4.4 Billion.
TWTR's board did not want that same type of mistake pinned on them.
Must will never own TWTR.
boards don’t call peoples bluffs with billions of dollars and tens of thousands of jobs on the line. The board feels musk can and will buy the company and that is in the best interest of the shareholders. I don’t agree with them, but I’m not on the board nor am I a shareholder so my opinion doesn’t count.
This is also possible
- TWTR at $49.64
- collapse to $32
- Easy 50%
The market can go either way.
And there is so much publicity.
Hence the massive EASY profit
How do you go about selling your shares once a public company goes private and is delisted? Do you call the investor relations number and place your offer there?
The only job the board is concerned with saving is that of Parag Agrawal. Beyond that each member is concerned with his or her own reputation and maintaining an ability to wield influence.
Business is very much a game, and calling bluffs is in fact one part of it. Twitter is in a win/win position: If Musk closes the deal, then the board and the shareholders will be paid an undeserved and unexpected windfall. If Musk fails to close on the financing, TWTR gets a $1 Billion cash infusion.
However, there is nothing the board can do to keep the share price from plummeting along with the rest of the market. But at least as the stock price plunges the board doesn't have the added infamy of having tuned down a $44 Billion dollar offer as the market cap falls 90% from its current valuation over the coming quarters.
Brilliant gamesmanship by the board.
In an all cash deal such as this presumably is, your shares will be bought by the acquiring entity and replaced with cash in your brokerage account.