Düsseldorf The richest man in the world wants to take over the short message service completely, then take it off the stock exchange and rebuild it according to his ideas. He is willing to pay more than $40 billion for this deal.
You’d think nobody would be willing to invest around $41.5 billion in a dying company. Neither does Elon Musk. It was only five days ago that he questioned the short message service’s viability because famous users such as US pop stars Justin Bieber, Katy Perry, Rihanna and Taylor Swift hardly ever tweeted. That sounded almost a bit reproachful, as if he couldn’t understand that there are people who don’t want to turn their hearts out on Twitter. Musk is very different, he regularly provides his 80 million followers with posts about the world and how he sees it.
Now Musk, who already holds nine percent of the shares in Twitter, wants to buy the company completely and take it off the stock exchange after the takeover. Whether that will work remains to be seen. The Twitter board wants to examine the offer and “act in the interests of the shareholders”. Musk himself says he’s not sure his offer will work. In any case, it should remain his only one.
Stockbrokers have thus found the explanation for the fact that Musk first wanted to join the board of directors after joining Twitter and then didn’t. There is an agreement that Musk, as a member of the supervisory board, should not have owned more than 14.9 percent of the shares until 2024.
On the one hand, such restrictions are not compatible with the self-image of a man who has long since known no boundaries for himself and, on the other hand, wants to rule Twitter alone. Only then could he take the group off the stock market as announced and prevent the share price and thus also a not insignificant part of Elon Musk’s assets from constantly fluctuating in value. Only then can Twitter realize its potential as a platform for free speech, Musk has said, probably recalling January last year when Twitter stock plummeted after former US President Donald Trump’s account was suspended. The stock exchange sensitivity of Twitter politics became visible in the long term.
Musk knows that too. Five days after Trump supporters violently stormed the Capitol, Twitter officially justified the measure by saying that the ex-president could use his account to “further incite violence”. The fact that Trump’s tweets from a daily number of 35 regularly reflected the Republican’s nervousness and thus also caused unrest on the financial markets, will not have gone unnoticed by those responsible for the listed short message service.
On Thursday, the Twitter share price rose massively after Musk’s announcement. The plus was more than ten percent in between, the market value climbed to more than 36 billion dollars (around 33.5 billion euros). So the sale would be good business for Twitter shareholders right now. Especially if they entered the market five years ago at a price equivalent to EUR 13.67. Then their assets would have more than tripled in that time. Elon Musk would also have earned a lot if he were to resell everything instead of buying. But the American stock exchange supervisory authority would be there. She already has him on the Kieker because of his allegedly too late Twitter entry. But this is another story.
Here is the photo gallery: This is Elon Musk