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Knowing the possible shitstorm it would cause, Twitter upper management sold the company anyway. Not that they care, they got fabulously wealthy off the deal.

WoahNoun 4y ago
Not selling the at the price he offered would have been massively violating their fiduciary duty. Twitter stock would probably be worth like $20-30 given the current market versus the $54 offered.
- trap_goes_hot 4y ago
  There is a lot of confusion with people offering their own opinions. https://www.pbs.org/newshour/economy/twitter-board-of-directors-adopt-poison-pill-defense-against-musk-takeover-bid https://www.pbs.org/newshour/economy/twitter-board-of-direct... It seems the board tried to block it at first. Also - "A Saudi prince who is among Twitter’s major shareholders scoffed at Musk’s offer in a Thursday tweet. Al Waleed bin Talal said he would reject Musk’s overtures because he didn’t believe $43 billion “comes close to the intrinsic value of Twitter, given its growth prospects."
  - WoahNoun 4y ago
    That has nothing to do with the contract Musk actually signed.
shrikant 4y ago
Shareholders were being offered a very nice premium on the stock price, so Twitter upper management would have been awash in shareholder lawsuits if they'd rejected the deal. Essentially, the Twitter board was snookered once Musk made a serious offer.
- trap_goes_hot 4y ago
  I'm curious if this (lawsuits) has happened before.
  - vasco 4y ago
    https://www.google.com/search?q=shareholder+lawsuit+buyout+rejection https://www.google.com/search?q=shareholder+lawsuit+buyout+r...
- blitzar 4y ago
  Essentially, the Twitter board was snookered once Musk made a serious offer and the market tanked making the premium >100%.
- trap_goes_hot 4y ago
  I'm curious to see if such lawsuits have succeeded in the past - in similar situations.
r00fus 4y ago
You do realize that if they didn't accept the offer, C-suite would be pursued by shareholder lawsuit holding them liable for lost valuation?
- trap_goes_hot 4y ago
  Maybe someone who is an expert can comment on this. It seems the board tried to block it at first. https://www.pbs.org/newshour/economy/twitter-board-of-directors-adopt-poison-pill-defense-against-musk-takeover-bid https://www.pbs.org/newshour/economy/twitter-board-of-direct... Also - "A Saudi prince who is among Twitter’s major shareholders scoffed at Musk’s offer in a Thursday tweet. Al Waleed bin Talal said he would reject Musk’s overtures because he didn’t believe $43 billion “comes close to the intrinsic value of Twitter, given its growth prospects."

WoahNoun 4y ago

Not selling the at the price he offered would have been massively violating their fiduciary duty. Twitter stock would probably be worth like $20-30 given the current market versus the $54 offered.

trap_goes_hot 4y ago
There is a lot of confusion with people offering their own opinions. https://www.pbs.org/newshour/economy/twitter-board-of-directors-adopt-poison-pill-defense-against-musk-takeover-bid https://www.pbs.org/newshour/economy/twitter-board-of-direct... It seems the board tried to block it at first. Also - "A Saudi prince who is among Twitter’s major shareholders scoffed at Musk’s offer in a Thursday tweet. Al Waleed bin Talal said he would reject Musk’s overtures because he didn’t believe $43 billion “comes close to the intrinsic value of Twitter, given its growth prospects."
- WoahNoun 4y ago
  That has nothing to do with the contract Musk actually signed.

shrikant 4y ago

Shareholders were being offered a very nice premium on the stock price, so Twitter upper management would have been awash in shareholder lawsuits if they'd rejected the deal. Essentially, the Twitter board was snookered once Musk made a serious offer.

trap_goes_hot 4y ago
I'm curious if this (lawsuits) has happened before.
- vasco 4y ago
  https://www.google.com/search?q=shareholder+lawsuit+buyout+rejection https://www.google.com/search?q=shareholder+lawsuit+buyout+r...
blitzar 4y ago
Essentially, the Twitter board was snookered once Musk made a serious offer and the market tanked making the premium >100%.
trap_goes_hot 4y ago
I'm curious to see if such lawsuits have succeeded in the past - in similar situations.

r00fus 4y ago

You do realize that if they didn't accept the offer, C-suite would be pursued by shareholder lawsuit holding them liable for lost valuation?

trap_goes_hot 4y ago
Maybe someone who is an expert can comment on this. It seems the board tried to block it at first. https://www.pbs.org/newshour/economy/twitter-board-of-directors-adopt-poison-pill-defense-against-musk-takeover-bid https://www.pbs.org/newshour/economy/twitter-board-of-direct... Also - "A Saudi prince who is among Twitter’s major shareholders scoffed at Musk’s offer in a Thursday tweet. Al Waleed bin Talal said he would reject Musk’s overtures because he didn’t believe $43 billion “comes close to the intrinsic value of Twitter, given its growth prospects."