Elonmusk
Poison Pill Explained: Why Elon Wants to Buy TwitterIn this post, I'll explain the ongoing situation with Twitter; how they're preventing Elon from buying the company out, and my thoughts on why Elon wants Twitter so badly.
Twitter's Strategy
- Twitter is using a strategy known as the 'poison pill'.
- This is one of many defensive strategies that boardrooms can take when they're trying to prevent hostile takeovers.
- While the method may vary depending on the deal, the essence of the strategy is simple: make the stock less appealing to the hostile acquirer, and allow opportunities for other shareholders to acquire the stock at a discounted price through the use of call options.
- Netflix (NFLX) successfully used this strategy against Carl Icahn in 2012, when he attempted a hostile acquisition of the company, making it difficult for Icahn to acquire more than 10% of the company without approval from the Netflix board.
- Luckily for Icahn, he made 20x returns on his investment simply from holding Netflix shares for the three years that he attempted a takeover.
- In the case of Elon's acquisition of Twitter, the terms are slightly different.
- Elon offered to buy the entire company for $43B, which is a generous offer of $54.20 per share.
- Twitter's board however, having seen prices once hover above $70, were not happy with Elon's offer, and asked him to join the board with a 14.9% stake limit - Elon refused.
- Twitter emphasized that their poison pill strategy will activate if Elon tries to acquire more than 15% stake in the company, and will remain effective until April 14, 2023.
Twitter Shareholders by Size
- The Vanguard Group, Inc. 10.3%
- Elon Musk 9.2%
- Morgan Stanley Investment Management 8.4%
- BlackRock Fund Advisors 6.5%
- State Street Corp. 4.5%
Why Elon Wants to Buy Twitter
- My thoughts on why Elon is looking to acquire Twitter is as follows:
- The narrative that Elon is pushing as his justification for the purchase is "free speech".
- He has been vocal about Twitter's decision to shut down former US president Donald Trump's account.
- However, I personally believe that there are deeper layers to this matter than just 'free speech', and 'twitter's untapped potential'.
- Tesla currently does not spend a single dime on marketing and advertisement costs.
- Elon dissolved the PR department in 2020, and stated that the capital that was previously used for marketing, will now be reinvested back for R&D.
- Instead, Elon has been using his twitter account as a channel to promote his businesses - not only Tesla, but also SpaceX, SolarCity, and the Boring Company.
- The last time Tesla had a PR department, it spent $70m in marketing and advertisement costs.
- So taking that into account, and considering the value that was created by those costs being reinvested back into R&D, Elon has singlehandedly managed to create hundreds of millions of dollars in value through his twitter account.
- And the risk of him having his twitter account shut down, due to his potential violation of one of their many policies, is huge.
- His acquisition of the company's stake, and taking the company private eliminates this risk for him.
- Put into context, it makes more sense: Elon's $43B offer to buy Twitter is equivalent to someone with a net worth of $1m purchasing a G-wagon for their rental car business.
Conclusion
On one hand, we have Twitter, a company willing to use the poison pill strategy to prevent a hostile acquisition from taking place, and on the other hand, we have Elon Musk, who's trying to take the company private for $43B. I think there are bigger implications to his offer, as we've seen how he was able to connect seemingly unrelated businesses to form a virtuous cycle that would become the pillar of his entire empire. We use electricity generated from SolarCity to power our Tesla cars using solar energy. With the satellites that SpaceX launches, our Tesla cars undergo software updates in real time, and the Boring Company solves traffic jam issues by taking our Teslas through underground tunnels. I'm sure there's room for Twitter to fit into this equation, but I'm not completely sure as to what Elon has on his mind. One thing is for sure: it has more to do with Elon's personal philosophy.
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MULN retracement complete If you haven`t bought the dip on MULN:
Then you should know that the retracement seems to be complete and the stock is ready for another leg up.
You will need to wait for the reversal candle formation, or at least a doji, though.
My next price target is $5.25.
Looking forward to read your opinion about it.
$TWTR$TWTR Apollo Global Management is willing to finance a Twitter buyout, sources say
Bloomberg reported Sunday that Oracle (ORCL) co-founder Larry Ellison and private-equity firm Thoma Bravo could join with Musk and raise up to $50 billion. That’s quite a war chest.
The $50 billion figure implies a much higher price for Twitter stock, about $72 a share. If the $50 billion is for all of Twitter, including, Musk’s existing stake, the implied price is about $65 a share.
SOLANA : Daily TA : 04.18.22 (IO)echnical analysis of #Solana 's chart and its appealing ranges . Let's take a look at some of the high-potential cryptocurrencies in the market for investment, as you can see all the supports, resistances, targets, etc. are marked on the chart. Pay special attention to the specified levels that i mentioned in the chart . I think everything is obvious in the chart , but just in case if you had any questions pls feel free to ask .
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⚠️ This Analysis will be updated ...
👤 Arman Shaban : @ArmanShabanTrading
📅 04.18.2022
⚠️(DYOR)
❤️ If you apperciate my work , Please like and comment , It Keeps me motivated to do better ❤️
Bitcoin 6H TA : 04.17.22 (Update)As you can see, the price is still trading in the 40K support range and the trading volume is very low ! To determine the new trend, we must wait for smart money to enter the market. first major bullish target is $ 42K, and if it breaks , the next target will be in the $ 43,000 to $ 44,800 range. Also, the two most important support levels for Bitcoin will be in the range of $ 38,600 to $ 39,200 and $ 37,000!
Follow us for more analysis & Feel free to ask any questions you have, we are here to help.
⚠️ This Analysis will be updated ...
👤 Arman Shaban : @ArmanShabanTrading
📅 04.17.2022
⚠️(DYOR)
❤️ If you apperciate my work , Please like and comment , It Keeps me motivated to do better ❤️
TWITTER - LongThe bullish impulse from May 2016 formed an Expanding Leading Diagonal for Twitter. According to Elliott Wave Theory, this pattern (occurs as Wave 1 or Wave A) usually dictates the direction of impulse - in this case, to the upside.
As long as we don't break below $13.70, all retracements are considered as Wave 2. Once Wave 2 completes, a more impulsive Wave 3 will ensue - it could already be in the works, considering we've bounced off significantly from the $30 range.
Twitter will probably see ~$140 in the coming years.
$DOGE @elonmusk is buying Twitter...probably nothing...Analyzing $DOGE is like doing Elon Musk analysis. The two are connected and unpredictable.
We can however see that the movement is bullish and the ATH has been running for almost a year (May 8th 2021).
In the $DOGE foundation there are both Musk and Buterin and this coin has yet to take its revenge on the other Dog.
If the rise starts as it seems, I thought about the TP (green) and the SL (orange) reached each step.
The FIB time cycle suggests that something may happen around June 10th, but I think it happens sooner.
And yes! Musk is buying Twitter...probably nothing...
BTCUSDT - Elliot Waves (#5 WAVE NOT YET COMPLETED) - 1Day (2022)Seems to me BTC has done a total of 5 major wave patterns with its recent ATH of 69k being on the last wave projection (5th wave to complete). Whether it bounces from 37k to recent highs (50-67k) or enter bear market for support at 28k area.
DOGE - Time for a correction buddy👇- Btc is bearish
- Trendline is perfect and visible on all timeframes
- There has been many touches
- Price is under vwap
- Elon tweeted but it didn't affect the price
On trendline breakout I plan to open a trade with stoploss behind local minimum
What do you think of this idea? What is your opinion? Share it in the comments📄🖌
If you like the idea, please give it a like. This is the best "Thank you!" for the author 😊
P.S. Always do your own analysis before a trade. Put a stop loss. Fix profit in parts. Withdraw profits in fiat and reward yourself and your loved ones
#btcstarburst Bounce Time or Pause?So following up on the map after watching bitcoin fall through empty space… Finally it landed on something. Scary thing volume not looking great, but there has been many attempts to recover along the fall. So this will account for something. So the funny part in the story… Bitcoin was pretty much right on time with its dramatic cliff jump on the 5th followed up with FUD on social media to give reasons why bitcoin is crashing (as if anyone can validate what the beast does). One thing is true when leverage is being played, exchanges are going to find a way to get payed. Algorithms are smart. DCA safely. Hopefully they got what they needed.
$DOGE.X Next Target PTs .1575-.1796 and higherWhat is Dogecoin (DOGE)?
Dogecoin is a cryptocurrency that was created on December 6th, 2013 based on the popular "Doge" Internet meme and features a Shiba Inu on its logo.
The codebase of the project was a fork of Litecoin, in which most of the same features such hash hashing algorithm were inherited, with the only difference of branding and large inflationary supply.
Introduced as a "joke currency", Dogecoin quickly developed its own online community and reached a capitalization of US$60 million in January 2014. Compared with other cryptocurrencies, Dogecoin had a fast initial coin production schedule: 100 billion coins were in circulation by mid-2015, with an additional 5.256 billion coins every year thereafter. As of 30 June 2015, the 100 billionth Dogecoin had been mined.
Dogecoin was created by Billy Markus from Portland, Oregon and Jackson Palmer from Sydney, Australia. Both wanted to create a fun cryptocurrency that will appeal beyond the core Bitcoin audience. Dogecoin is primarily used as a tipping system on Reddit and Twitter where users tip each other for creating or sharing good content. The community is very active in organising fundraising activities for deserving causes.
The developers of Dogecoin haven’t made any major changes to the coin since 2015. This means that Dogecoin could get left behind and is why Shibas are leaving Dogecoin to join more advanced platforms like Ethereum. One of Dogecoin strengths is its relaxed and fun-loving community. However, this is also a weakness because other currencies are way more professional.
DOGE inside falling wedge#DOGE/USDT
$DOGE is trading inside falling wedge pattern.
🐻 price can have more drop to lower line of wedge or at least to support zone around $0.124.
🐮 holding the lower line of wedge as support can increase price to break out from wedge pattern to head up toward resistance zone around $0.166 and break out from this resistance will increase price to touch $0.3.
What does Elon Musk want out of his Twitter stake?After being a staunch critic of Twitter for years, Elon Musk has acquired a 9.2% stake in the company for an estimated $2.9 billion in a deal that is widely seen as an attempt to shake things up at the social media platform.
Twitter’s stock surged 27% on April 4 following the ownership announcement.
Currently the world’s richest person with a net worth of over $270 billion, Musk became the platform’s largest shareholder and landed a seat on Twitter’s board of directors shortly after the ownership disclosure. The appointment would allow the Tesla and SpaceX chief executive officer to pitch ideas like adding an edit button to tweets and advocating free speech.
Free speech vision
Even before building his stake in Twitter, Musk has long criticized the platform for its restrictive policies. The self-proclaimed “free speech absolutist” in late March put out a controversial free speech poll asking his more than 80 million followers if they believe Twitter adheres to the principle of free speech as a key to “a functioning democracy.”
Musk also stressed the importance of the poll, urging his followers to vote carefully. Majority — or 70.4% — of Musk’s followers said “no” to the survey.
In a tweet two days after the poll, Musk said that “given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done?”
Weeks later, Twitter came out with an ownership filing disclosing Musk’s stake.
Musk now owns a bigger stake than Twitter founder Jack Dorsey, who still owns just over 2% of the company. Dorsey is known to be pro-censorship. Prior to Dorsey stepping down as CEO in November, Twitter moved to permanently suspend the Twitter account of former US President Donald Trump after the attack on the US Capitol Building on January 6 2021, with Dorsey saying it was “the right decision” for the company.
The question now lies on whether Musk will reinstate Trump’s Twitter account. But more than that, the acquisition will make Twitter’s stock more sensitive to tweets by Musk.
Market-moving tweets
Musk's excessive usage of Twitter triggered warnings, subpoenas and lawsuits by the US Securities and Exchange Commission in recent years. In 2018, he stepped aside as chairman of Tesla as part of a settlement with the SEC and agreed to pay a $20 million fine over past market-moving tweets that affected the carmaker’s stock price.
The billionaire’s tweets in mid-March about owning cryptocurrencies Bitcoin, Ethereum or Doge and having no intentions to sell his positions pushed up the market price of these digital tokens.
With his position in Twitter, Musk’s criticisms against the microblogging site will likely have an impact on its share price movement. His investment in Twitter provided a lifeline to the company as its shares have fallen to below $40 apiece in recent months.
Latest challenge for Twitter
After being targeted by activist shareholder Elliott Management for years, leading to Dorsey relinquishing his role as CEO, Twitter will now be up against Musk, who according to New York Times’ Opinion writer Kara Swisher, is an active investor.
"Elon Musk doesn’t take a 9.2% interest in a company like Twitter simply for passive income… he was never going to sit on the sidelines of the fight over Twitter,” Swisher said in an opinion piece on Thursday.
In a sign of his plan to take on a more active role on Twitter’s board, Musk filed a more detailed Schedule 13D filing with the SEC three days after submitting a Schedule 13G, which is intended for investors that do not plan to engage with the company’s management. A 13D filing makes passive investors transition into activist status.
Musk’s exact plans for Twitter remain uncertain, but Twitter’s stock will surely be one to watch in the coming days. Over the past 24 hours, Musk put out more polls including asking his followers whether or not to “convert Twitter SF HQ to homeless shelter since no one shows up anyway.”
The Tesla CEO also wants Twitter to remove advertising for subscribers of its Twitter Blue paid subscription service, he said in a tweet on Saturday. The plan is expected to be met with opposition from Twitter’s board as 89.8% of Twitter’s revenue in the fourth quarter of 2021 was from advertising.