It's a strictly good deal for everyone except Musk. The price of the new shares are 50% of the price of the current shares and the dilution is 85% (not 100%) .

It's a strictly good deal for everyone except Musk. The price of the new shares are 50% of the price of the current shares and the dilution is 85% (not 100%) . So keeping everything else equal, if before the acquisition there were 100 shares at $10 each, the market cap would be $1,000. If someone hits 15% suddenly you can buy at $5. The market cap stays the same (nothing about the business has changed) but suddenly there are 185 shares. So the new price per share on the open market is 1,000/185 or $5.41. So just buy the extra shares you can buy and you should be able to sell them on the open market for a profit. The only person who loses out is Musk, would now owns ~half as much of Twitter as he did before.