Twitter customers awoke on April 4 and located the phrases “Elon” and “Elon Musk” trending on the location – not as a result of the world’s richest man had prompted a stir along with his futuristic firms Tesla and SpaceX, however as a result of he instantly disclosed he had turn into Twitter’s greatest shareholder.
In the following three weeks, Mr Musk would transfer shortly – in between tweeting – to strike a deal to take over the social media large. Here is what occurred:
Jan 31: Musk begins quietly shopping for Twitter shares (*10*).
March 14: He accumulates an over 5 per cent stake, at which level he ought to make a disclosure. Musk will miss this deadline by 10 days. As Twitter’s share value rose the second his stake was revealed, he was in a position to accumulate extra on a budget by not disclosing. This will later set off a shareholder lawsuit.
March 24: His stake nonetheless secret, Musk begins critiquing Twitter, on Twitter.
April 4: The billionaire reveals he has a 9 per cent stake in Twitter, making him its greatest single shareholder. Twitter presents him a seat on its board – as long as he doesn’t personal greater than 14.9 per cent. He initially accepts the provide.
April 9: Musk rejects seat on Twitter’s board on the day he’s meant to be a part of.
April 11: Musk information an amended disclosure with the United States regulator. He can now buy as many shares as he needs.
April 12: Investor Marc Bain Rasella information a lawsuit in opposition to Musk for failing to report his Twitter share purchases in time.
April 14: The Tesla founder presents to purchase Twitter for US$43 billion. The provide is US$54.20 a share – an obvious reference to Musk’s failed bid to take Tesla personal in 2018 for US$420 a share and to a particular quantity in pot tradition. Twitter shares plummet after the hostile takeover bid.
April 15: Twitter board mounts a “poison pill” technique in opposition to Musk. The plan permits shareholders to buy shares at a reduction if any shareholder exceeds 15 per cent possession. This will successfully dilute the billionaire’s stake.
April 16: Musk tweets “Love Me Tender” as he teases the potential for a hostile takeover.
April 18: Twitter co-founder and former chief govt Jack Dorsey slams the board for “plots and coups” which might be “consistently the dysfunction of the company”.
April 21: Musk information doc, saying he has secured US$46.5 billion in funding for a takeover bid.
April 24: Twitter board holds discussions with Musk, taking his provide extra critically as soon as he introduced particulars of his financing.
April 25: Twitter agrees to promote to Musk for his authentic provide of $54.20 a share. The deal, now valued at about US$44 billion (S$60.4 billion), will take the corporate personal. Musk says he’ll prioritise free speech on the location, open-source its algorithms, remove spam and add new options.
Sources: Bloomberg, Daily Mail