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It’s interesting to contextualize this with a regular persons life. This amount will present about 1/7 of his net worth. However unlike a traditional purchase

It’s interesting to contextualize this with a regular persons life. This amount will present about 1/7 of his net worth. However unlike a traditional purchase this will be n investment and depending on how it goes, he can get even more money. If an average person had a max net worth of 3 million this would be like them deciding to buy a 400K investment property, or a laundry mat. That aside, this is also a great example of how easy it is to become richer if you’re rich. Musk buys at $39 pumps all month to $54. He can either sell and easily make billions profit or take over the entire company at what can only be described as a discount compared to potential. Not to mention twitters stock hardly does well. He can just try again on the next dip if he likes.

qsi 5y ago
That's not quite how it works if you make a formal takeover offer. It's basically telling existing shareholders that he'll buy their stock at $54. If enough of them don't want to sell (depending on how it's structured), the deal falls through. It's a one-off purchase at $54 if it does go through. He can't buy more stock in the interim (I think).
- endisneigh 5y ago
  Yes, but if they do not agree the price will: 1. Go to above $54, in which case musk profits and he can try again later (headwinds are strong in tech generally right now) 2. Go between $39 and $54 in which musk profits 3. Drop under $39 in which musk can further solidify his stake, for much cheaper than his takeover offer. There’s basically no scenario in which musk loses assuming he’s serious and is willing to play the long game. Musk will either make a lot of money, or own Twitter.
  - asdfaoeu 5y ago
    > Musk will either make a lot of money, or own Twitter. I mean maybe he still acquires Twitter but that could be in 20 years after it's been run into the ground.
- Aeolun 5y ago
  I don’t see why he couldn’t buy more stock at the current selling price? As long as someone is willing to sell anyway. This takeover is aimed at people that wouldn’t ordinarily sell their stock at this point in time.
  - qsi 5y ago
    IIRC the regulations are such that if you make a takeover offer, you can't do that? Not sure though, my work is only M&A-adjacent, so I'm not an expert.
- chernevik 5y ago
  I think this is an offer to the board, proposing that it compel all shareholders to sell at $54/share. The board can decide on the proposal without consulting the shareholders. In practice the board will do what management thinks best. The various directors probably have legal duties as fiduciaries and will want to act in a manner such that they can demonstrate they performed those duties in good faith, but they will have enormous latitude so long as they observe certain forms. There are likely procedures by which someone can force a shareholder vote on a proposal, but Musk isn't using them here. These are probably structured by the company bylaws.
  - rootusrootus 5y ago
    > compel all shareholders to sell at $54/share The board doesn't have that power. If a majority of shareholders do not want to sell, they'll just replace the board if it tried such a thing. In this case, the top 10 shareholders are almost 50% of the shareholders all by themselves, so this really comes down to what they decide to do.
koolba 5y ago
> Musk buys at $39 pumps all month to $54. He can either sell and easily make billions profit or take over the entire company at what can only be described as a discount compared to potential. He can’t sell his whole stake for a profit. There’s nowhere near enough liquidity. The moment he tries to sell billions of dollars of stock it’d tank.
- quxbar 5y ago
  How would the price tank if he holds all the shares?
  - aliswe 5y ago
    because the price itself only indicaes that there is someone wantin to buy shares at that price - it doesnt indicate the number of shares that would go would he accept that price.
  - asdfaoeu 5y ago
    Isn't the premise that he's selling them?
  - mlindner 5y ago
    The post you're responding to is talking about Tesla shares, not Twitter shares.
- qsi 5y ago
  He'll have to do it the same way he bought his current stake: slowly, over weeks and months, a little bit every day. A totally standard thing to ask your investment bank to do.
  - HWR_14 5y ago
    He bought 4.6% of Twitter in the two weeks he went from 5% to 9.6% when he filed. That's not super slow.
    - 5y ago
instakill 5y ago
400k is an insane amount for a laundry mat
- bdavis__ 5y ago
  not with building.
- bombcar 5y ago
  Here's one for $450, saw another for $375: https://www.bizbuysell.com/Business-Opportunity/self-serve-laundromat-for-sale/1887677/ https://www.bizbuysell.com/Business-Opportunity/self-serve-l... - and they don't even own the building. Machines alone are $1-3k each depending on how old and repaired they are.
loceng 5y ago
It's not an obvious good idea to buy Twitter though - and is especially risky if you're not wanting to just continue to run the business as is without potentially de-stabilizing it and destroying it in the process.
IshKebab 5y ago
Ah yes, the average multimillionaire.

qsi 5y ago

That's not quite how it works if you make a formal takeover offer. It's basically telling existing shareholders that he'll buy their stock at $54. If enough of them don't want to sell (depending on how it's structured), the deal falls through. It's a one-off purchase at $54 if it does go through. He can't buy more stock in the interim (I think).

endisneigh 5y ago
Yes, but if they do not agree the price will: 1. Go to above $54, in which case musk profits and he can try again later (headwinds are strong in tech generally right now) 2. Go between $39 and $54 in which musk profits 3. Drop under $39 in which musk can further solidify his stake, for much cheaper than his takeover offer. There’s basically no scenario in which musk loses assuming he’s serious and is willing to play the long game. Musk will either make a lot of money, or own Twitter.
- asdfaoeu 5y ago
  > Musk will either make a lot of money, or own Twitter. I mean maybe he still acquires Twitter but that could be in 20 years after it's been run into the ground.
Aeolun 5y ago
I don’t see why he couldn’t buy more stock at the current selling price? As long as someone is willing to sell anyway. This takeover is aimed at people that wouldn’t ordinarily sell their stock at this point in time.
- qsi 5y ago
  IIRC the regulations are such that if you make a takeover offer, you can't do that? Not sure though, my work is only M&A-adjacent, so I'm not an expert.
chernevik 5y ago
I think this is an offer to the board, proposing that it compel all shareholders to sell at $54/share. The board can decide on the proposal without consulting the shareholders. In practice the board will do what management thinks best. The various directors probably have legal duties as fiduciaries and will want to act in a manner such that they can demonstrate they performed those duties in good faith, but they will have enormous latitude so long as they observe certain forms. There are likely procedures by which someone can force a shareholder vote on a proposal, but Musk isn't using them here. These are probably structured by the company bylaws.
- rootusrootus 5y ago
  > compel all shareholders to sell at $54/share The board doesn't have that power. If a majority of shareholders do not want to sell, they'll just replace the board if it tried such a thing. In this case, the top 10 shareholders are almost 50% of the shareholders all by themselves, so this really comes down to what they decide to do.

koolba 5y ago

> Musk buys at $39 pumps all month to $54. He can either sell and easily make billions profit or take over the entire company at what can only be described as a discount compared to potential. He can’t sell his whole stake for a profit. There’s nowhere near enough liquidity. The moment he tries to sell billions of dollars of stock it’d tank.

quxbar 5y ago
How would the price tank if he holds all the shares?
- aliswe 5y ago
  because the price itself only indicaes that there is someone wantin to buy shares at that price - it doesnt indicate the number of shares that would go would he accept that price.
- asdfaoeu 5y ago
  Isn't the premise that he's selling them?
- mlindner 5y ago
  The post you're responding to is talking about Tesla shares, not Twitter shares.
qsi 5y ago
He'll have to do it the same way he bought his current stake: slowly, over weeks and months, a little bit every day. A totally standard thing to ask your investment bank to do.
- HWR_14 5y ago
  He bought 4.6% of Twitter in the two weeks he went from 5% to 9.6% when he filed. That's not super slow.
  - 5y ago

instakill 5y ago

400k is an insane amount for a laundry mat

bdavis__ 5y ago
not with building.
bombcar 5y ago
Here's one for $450, saw another for $375: https://www.bizbuysell.com/Business-Opportunity/self-serve-laundromat-for-sale/1887677/ https://www.bizbuysell.com/Business-Opportunity/self-serve-l... - and they don't even own the building. Machines alone are $1-3k each depending on how old and repaired they are.

loceng 5y ago

It's not an obvious good idea to buy Twitter though - and is especially risky if you're not wanting to just continue to run the business as is without potentially de-stabilizing it and destroying it in the process.

IshKebab 5y ago

Ah yes, the average multimillionaire.