A complete timeline of the Elon Musk-Twitter saga – TechCrunch

It’s been a crazy month of news for the social network we collectively love to hate. In early April, Elon Musk took a bite out of Twitter, leaving with 9.2% of the company and plans to exert his influence on the company through its board of directors. After he stepped down from his planned board seat, Musk hatched an even more outrageous plan: He would buy the company and take it private. Absolutely everyone freaked out about it and had an opinion and some of those opinions cast doubt on the seriousness of the notorious not-so-serious tech mogul’s grand plans.

Musk’s $43 billion bid valued Twitter at a lower price than a year ago, begging the question: is this guy real? We still don’t really know – Musk is mercurial and notoriously prone to big, stupid stunts – but apparently he’s cobbled together the money with the help of Morgan Stanley and Bank of America.

Musk is the world’s richest man, but he’s also relatively cash-poor for a mega-billionaire, so making his game on Twitter would require him to cash in on shares held in Tesla and SpaceX, the two companies he ostensibly directs while whipping us all into a frenzy over his utterly wasteful ambitions to buy Twitter and reshape it in his image. Meanwhile, Twitter is scrambling to fend off Musk’s advances with a poison pill defense, which would allow existing shareholders to buy more shares at rock bottom prices, effectively diluting the company’s stock and driving up the price of his offer.

Because this is Musk we’re talking about, no one knows what will happen next, but here’s what’s happened so far. We will provide updates as the story unfolds.

A timeline of the Elon Musk-Twitter saga

1. US regulators said someone really should be monitoring Elon Musk’s tweets

Even before Musk made a bid for Twitter, SEC regulators said they had the power to subpoena the Tesla CEO over his tweets and even urged a federal judge not to let the executive get away with abandon.

2. Elon Musk tweets that he’s “seriously considering” creating his own social media platform

Shortly after US regulators urged a judge to scrutinize Musk’s tweets, the Tesla and SpaceX CEO said he was seriously considering building the “next Twitter”.

3. Elon Musk buys 9.2% of Twitter shares on April 4

Twitter posted a note confirming that the SpaceX and Tesla contractor took a 9.2% stake in the company, or about $2.9 billion based on Friday’s March 4 share price.

4. Elon Musk lands a seat on Twitter’s board the next day, April 5

Twitter CEO Parag Agrawal announced that Elon Musk had been appointed to Twitter’s board of directors in a series of tweets:

5. In a major U-turn, Elon Musk will no longer join Twitter’s board, announced April 10

Later that same week, Twitter CEO Parag Agrawal announced that he would not be joining the social media company’s board of directors. Agrawal’s disclosure follows a series of unusual tweets from Elon Musk over the same weekend in which he loudly asked his more than 80 million followers if Twitter was dying, citing the low frequency of tweets from some of the social network’s most popular personalities.

6. Twitter shareholder sues after Musk fails to promptly disclose huge Twitter investment

A Twitter shareholder sued Musk in a federal securities class action suit because Musk failed to disclose his 5% stake in Twitter when he was required to. The delay allowed Musk to buy more Twitter shares at a lower price and trick sellers of Twitter shares out of increased profits, the plaintiff claims.

7. Elon Musk offers to buy Twitter, the entire company, for $43 billion on April 14

The billionaire said he was willing to pay $54.20 per share to buy 100% of the company. It would be an all-cash offer that values ​​the social network at $43.4 billion. He filed the offer with the SEC and tweeted it hours before being interviewed on Ted.

8. Elon Musk interviews Ted hours after tweeting his big offer

The controversial Tesla and SpaceX CEO was already gearing up to speak at TED2022 for a conversation so requested that TED made the livestream available to the public.

9. The next day, April 15, Twitter’s board turns to the defense everyone’s been waiting for: the poison pill.

Twitter’s board announced in a press release that the company was adopting a time-limited shareholder rights plan — a “poison pill” in M&A jargon. Although the company does not directly name Elon Musk, Twitter is clearly trying to prevent the billionaire from buying the social network.

10. Elon Musk explains how he would fund his $43 billion Twitter bid

To sum it up: Musk intends to borrow around $13 billion in various ways; borrow $12.5 billion against its own equity holdings; and pay approximately $21 billion of its own assets. It’s a somewhat convoluted collection of funding sources, but Musk’s offer isn’t small, so the path to raising the necessary money in a single stack is understandably convoluted.

Leave a Reply

Your email address will not be published.