{"id":8288,"date":"2022-05-06T14:53:27","date_gmt":"2022-05-06T09:23:27","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=8288"},"modified":"2022-05-06T15:05:38","modified_gmt":"2022-05-06T09:35:38","slug":"how-to-buy-twitter-elon-musks-guide-tickertape","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/how-to-buy-twitter-elon-musks-guide-tickertape\/","title":{"rendered":"How to Buy Twitter &#8211; Elon Musk\u2019s Guide!"},"content":{"rendered":"\n<p>Elon Musk is an avid Twitterati, and you might have better odds at predicting a lottery winner than what his next tweet could be. It came as a surprise to netizens when Elon suddenly announced on Twitter that he&#8217;s buying the platform for a whopping $44 bn! This news has stunned the market as he acquired the company for $54.20 per share in less time than most of us take to tweet!&nbsp;<\/p>\n\n\n\n<p>But how did it happen, and what does it mean for investors? Let&#8217;s take a deeper look.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-twitter-elon-musks-guide-tickertape\/#Hostile-Takeover\" title=\"Hostile Takeover\">Hostile Takeover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-twitter-elon-musks-guide-tickertape\/#Poison-Pill-Strategy\" title=\"Poison Pill Strategy\">Poison Pill Strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-twitter-elon-musks-guide-tickertape\/#Market-Volatility\" title=\"Market Volatility\">Market Volatility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-twitter-elon-musks-guide-tickertape\/#Shareholding\" title=\"Shareholding\">Shareholding<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-twitter-elon-musks-guide-tickertape\/#Twitter-Headquarters\" title=\"Twitter Headquarters\">Twitter Headquarters<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Hostile-Takeover\"><\/span><strong>Hostile Takeover<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Experts hint at it as a &#8220;hostile takeover&#8221; strategy. It all began on 4 April 2022, when Elon Musk announced his purchase of a 9.2% stake in Twitter. He then offered to buy the entire company on 14 April 2022. Soon after becoming a major shareholder, Elon offered to either buy the company and take it private or reassess his position as a stakeholder if Twitter wasn&#8217;t ready to sell.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Poison-Pill-Strategy\"><\/span><strong>Poison Pill Strategy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Twitter used a &#8220;Poison Pill&#8221; strategy as a comeback. To prevent Elon from buying the entire company, they diluted the shareholding of all holders by offering aggressive discounts on stock prices. The expected <a href=\"https:\/\/www.tickertape.in\/blog\/bid-price\/\">bid price<\/a> was set to discourage Elon from taking over Twitter without the board&#8217;s approval. However, Elon Musk took over the influential global network by striking a deal on 25 April 2022. And, for now, he is advocating &#8216;free speech,&#8217; beginning his tweets with Coca Cola, ice cream, and fun &#8211; leaving the world sceptical about the organisation&#8217;s upcoming leadership style.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market-Volatility\"><\/span><strong>Market Volatility<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <a href=\"https:\/\/www.tickertape.in\/blog\/how-to-invest-in-shares\/\">stock market<\/a> also took notice. On 26 April, Twitter&#8217;s stock rose 5.7% to finish at $51.70, its highest closing value in nearly 5 months, and up more than 35% since 22 April. The stock was trading for less than $40, and it jumped by 28% when the news broke.&nbsp;<\/p>\n\n\n\n<p>Concerns about Tesla&#8217;s shares, on the other hand, have grown as a result of the stock&#8217;s loss of $126 bn in <a href=\"https:\/\/www.tickertape.in\/blog\/market-value\/\">market value<\/a> shortly after the takeover, raising questions about how Elon is financing his Twitter acquisition. Morgan Stanley, an investment bank, is leading the fundraising headlines with $21 bn in <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">equity<\/a> and $20 bn in loans, but financial details are yet to come up as speculation stirs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Shareholding\"><\/span><strong>Shareholding<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Since Twitter is a publicly-traded company, millions of retail investors own shares in the company. With Elon Musk&#8217;s acquisition of Twitter and proposal to take the company private, one question remains: What happens to Twitter&#8217;s shareholding?<\/p>\n\n\n\n<p>The answer is rather conceptual as when a publicly-traded firm is proposed to be taken private, the buyer \u2013 who could be the company itself or an outside investor \u2013 proposes to purchase publicly held shares at a premium. This means that if Company A&#8217;s stock is trading at $10, the buyout price will be more than $10 in order for public <a href=\"https:\/\/www.tickertape.in\/blog\/shareholders\/\">shareholders<\/a> to sell their shares.<\/p>\n\n\n\n<p>Elon Musk bid $54.20 per share for Twitter, and the stock is currently trading under ~$50 after the acquisition news. Investors benefit as long as the average price of their Twitter shares is less than the proposed acquisition price of $54.20.<\/p>\n\n\n\n<p>After the requirements for taking the company private are met, Musk will launch a tender offer for all publicly traded shares of Twitter for $54.20. Whether or not the tender offer is accepted, investors will be compensated in cash at this rate in the end.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Twitter-Headquarters\"><\/span><strong>Twitter Headquarters<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Elon Musk has floated ideas for upcoming features like the edit button, encrypted dm, and broader authentication with hints at a slight fee for commercial and government users. But, the employees express uncertainty over the company&#8217;s direction as CEO Parag Aggarwal states, &#8220;Once the deal closes, we don&#8217;t know what direction this company will go in&#8221;.&nbsp;<\/p>\n\n\n\n<p>Twitter stock is currently experiencing profit booking. With over 217 mn daily users, the company known for shaping modern global narratives and now awaits Elon&#8217;s responses to mounting speculation and challenges to settle the dust for investors alike. This reminds us of how a simple tweet is subtly more powerful and influential than many think it to be!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Read to know what prompted Elon Musk to buy Twitter for $44bn and what going private means for investors!<\/p>\n","protected":false},"author":93,"featured_media":8290,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[10,1744],"tags":[1594,44,15,1595],"acf":[],"modified_by":"Neera Bhardwaj","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/05\/TT-5-May-22-Elon-Musk-BB-01.jpg?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/8288"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/93"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=8288"}],"version-history":[{"count":4,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/8288\/revisions"}],"predecessor-version":[{"id":8294,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/8288\/revisions\/8294"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/8290"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=8288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=8288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=8288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}