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>Twitter will be flooded with thousands of shareholder lawsuits (for breaching their fiduciary duty) It's hard to say that Twitter breached their fiduciary dut

>Twitter will be flooded with thousands of shareholder lawsuits (for breaching their fiduciary duty) It's hard to say that Twitter breached their fiduciary duty when both their representing bank (Goldman) and the second largest shareholder (Kingdom Holding Company) both rejected the offer. The lawsuit will likely go nowhere; the sentiment is that the offer is way too low.

nodesocket 5y ago
You realize that Goldman has a price target of Twitter in the 30’s right. An offer then of $54.20 is nearly double that target.
- quickthrowman 5y ago
  There’s a firewall between the GS analyst setting the $30/share price target and the GS investment bankers advising Twitter…I suggest you look into how investment banks are regulated and structured.
filoleg 5y ago
> their representing bank (Goldman) [...] rejected the offer. GS deserves some fire under them for this for sure. Not solely for rejecting it, but due to their stated reasoning for "why". Their reasoning for rejecting the $54/share acquisition offer was "it is too low of a price target". In the meantime, Goldman's own last reported price target for Twitter is at $30/share. Unless I misunderstand something about how such things work, which is entirely plausible, this isn't a good look for GS at all. EDIT: as one of the replies pointed out, I was indeed misunderstanding the situation, and there is no actual discrepancy here. The entity saying "$54 is too low" was GS Bank, while "$30 is the target" statement was from GS Investments. They are separate entities and often disagree with each other.
- huslage 5y ago
  This is the bank vs the investment side. Goldman Sachs Bank is their representing Bank, Goldman Sachs Investments (or whatever it's called today) is the part that writes the public short-term price targets. They aren't connected and often disagree. It is the responsibility of the Bank to get maximum return on investment for the company. It is the responsibility of the Investments side to get as many customers in the door as possible and to provide them with timely information.
  - filoleg 5y ago
    > This is the bank vs the investment side. Goldman Sachs Bank is their representing Bank, Goldman Sachs Investments (or whatever it's called today) is the part that writes the public short-term price targets. They aren't connected and often disagree. Ah, that actually makes perfect sense, thanks for clarifying.
sudden_dystopia 5y ago
Goldman themselves has the price target at $30. Musk offered ~$55. Nearly double the price target. As clear cut a breach as it gets, even more so because Goldman rejected it. Any one that thinks Twitter is worth more than $60/share is delusional.
- mrtranscendence 5y ago
  And yet their one year high is something like $71 a share. This is absolutely a lowball offer from any reasonably long-term perspective.
calcifer 5y ago
> and the second largest shareholder (Kingdom Holding Company) Source? There is no such investor, at least not in the top 13: https://pbs.twimg.com/media/FQWWgx_VsAUoFxT?format=jpg&name=large https://pbs.twimg.com/media/FQWWgx_VsAUoFxT?format=jpg&name=...
- jungturk 5y ago
  https://twitter.com/Alwaleed_Talal/status/1514615956986757127 https://twitter.com/Alwaleed_Talal/status/151461595698675712...

nodesocket 5y ago

You realize that Goldman has a price target of Twitter in the 30’s right. An offer then of $54.20 is nearly double that target.

quickthrowman 5y ago
There’s a firewall between the GS analyst setting the $30/share price target and the GS investment bankers advising Twitter…I suggest you look into how investment banks are regulated and structured.

filoleg 5y ago

> their representing bank (Goldman) [...] rejected the offer. GS deserves some fire under them for this for sure. Not solely for rejecting it, but due to their stated reasoning for "why". Their reasoning for rejecting the $54/share acquisition offer was "it is too low of a price target". In the meantime, Goldman's own last reported price target for Twitter is at $30/share. Unless I misunderstand something about how such things work, which is entirely plausible, this isn't a good look for GS at all. EDIT: as one of the replies pointed out, I was indeed misunderstanding the situation, and there is no actual discrepancy here. The entity saying "$54 is too low" was GS Bank, while "$30 is the target" statement was from GS Investments. They are separate entities and often disagree with each other.

huslage 5y ago
This is the bank vs the investment side. Goldman Sachs Bank is their representing Bank, Goldman Sachs Investments (or whatever it's called today) is the part that writes the public short-term price targets. They aren't connected and often disagree. It is the responsibility of the Bank to get maximum return on investment for the company. It is the responsibility of the Investments side to get as many customers in the door as possible and to provide them with timely information.
- filoleg 5y ago
  > This is the bank vs the investment side. Goldman Sachs Bank is their representing Bank, Goldman Sachs Investments (or whatever it's called today) is the part that writes the public short-term price targets. They aren't connected and often disagree. Ah, that actually makes perfect sense, thanks for clarifying.

sudden_dystopia 5y ago

Goldman themselves has the price target at $30. Musk offered ~$55. Nearly double the price target. As clear cut a breach as it gets, even more so because Goldman rejected it. Any one that thinks Twitter is worth more than $60/share is delusional.

mrtranscendence 5y ago
And yet their one year high is something like $71 a share. This is absolutely a lowball offer from any reasonably long-term perspective.

calcifer 5y ago

> and the second largest shareholder (Kingdom Holding Company) Source? There is no such investor, at least not in the top 13: https://pbs.twimg.com/media/FQWWgx_VsAUoFxT?format=jpg&name=large https://pbs.twimg.com/media/FQWWgx_VsAUoFxT?format=jpg&name=...

jungturk 5y ago
https://twitter.com/Alwaleed_Talal/status/1514615956986757127 https://twitter.com/Alwaleed_Talal/status/151461595698675712...