3 ms·

This is interesting to me for a couple of reasons. One that is being discussed here in other threads is basically, "What does Musk think he can do that others

by dhimes 4y ago

This is interesting to me for a couple of reasons. One that is being discussed here in other threads is basically, "What does Musk think he can do that others before him haven't been able to?" Are we going to see a stroke of real genius here? The second point is also interesting, but isn't being discussed: Twitter enacted a poison pill on 15 April which could allow Musk to pay a ton but not get board control. I'm not an expert but what I've read is that if Musk (or anyone) tries to get a controlling share then other shareholders can gain voting shares for cheap, which makes it very expensive for Musk to actually achieve a takeover in the sense that he can do what he wants with the company. I'd love for somebody who knows more about that to help clarify it.

furyofantares 4y ago
The poison pill is just to prevent him from buying twitter on the open market. It can be removed at any time and any sale will be contingent on it being removed.
- dhimes 4y ago
  Thank you. I saw something about that downstream.
dhimes 4y ago
UPDATE: Farther downstream https://news.ycombinator.com/item?id=31154330 https://news.ycombinator.com/item?id=31154330 dahfizz explains that the poison pill only goes into effect if the board does not approve the purchase. If the board accepts the offer, the poison pill won't be an issue.
axg11 4y ago
The poison pill is irrelevant if Elon and the Board come to an agreement. Any deal would involve a workaround or nullifying of the poison pill. Elon is a smart guy but the real impact of this takeover will come from his ability to act unilaterally. Jack Dorsey hasn't owned a significant amount of Twitter for a decade and likewise hasn't had much ability to take bold decisions for at least as long. Elon will come in with the willingness and ability to take tough decisions, such as sacrificing engagement numbers for the sake of kicking out bots.

by dhimes 4y ago

furyofantares 4y ago

The poison pill is just to prevent him from buying twitter on the open market. It can be removed at any time and any sale will be contingent on it being removed.

dhimes 4y ago
Thank you. I saw something about that downstream.

dhimes 4y ago

UPDATE: Farther downstream https://news.ycombinator.com/item?id=31154330 https://news.ycombinator.com/item?id=31154330 dahfizz explains that the poison pill only goes into effect if the board does not approve the purchase. If the board accepts the offer, the poison pill won't be an issue.

axg11 4y ago

The poison pill is irrelevant if Elon and the Board come to an agreement. Any deal would involve a workaround or nullifying of the poison pill. Elon is a smart guy but the real impact of this takeover will come from his ability to act unilaterally. Jack Dorsey hasn't owned a significant amount of Twitter for a decade and likewise hasn't had much ability to take bold decisions for at least as long. Elon will come in with the willingness and ability to take tough decisions, such as sacrificing engagement numbers for the sake of kicking out bots.