Twitter stocks rose sharply on Monday, approaching Elon Musk's $ 54.20-per share request, as he spoke harshly to the company board amid rumors that some bids could be made.
Shares rose almost 7.5% to close at $ 48.45 on the second full trading day from Thursday, when the CEO of Tesla made what he called the "last and last gift" to buy a telecommunications company. The move came as a huge surprise, including Twitter. The board immediately installed a "poison pill" to prevent the improper seizure of property as its members said they were considering Musk's application.
"The board's salary will be $ 0 if my application is successful, so that's ~ $ 3M / year saved right there," Musk wrote on Twitter Monday (in response to a tweet writing the salaries of Twitter directors).
Musk had previously criticized the board on Twitter saying "collectively almost shareholders! In essence, their economic interests do not go hand in hand with shareholders."
In a few of his unusual tweets, Dorsey also criticized the Twitter board, saying "it has always been a corporate failure" and quoted what he called the "Silicon Valley proverb": "Good boards do not create good companies, but bad boards will always kill the company."
Dorsey stepped down as chief executive in November. Twitter chief technology officer Parag Agrawal now holds the reins.
Twitter stocks were partially encouraged to speculate that other buyers might enter. Apollo Global Management has been talking to various firms about helping to fund the pledge, but nothing concrete. The WSJ reported today that one potential candidate could be the independent company Thomas Bravo LP.
Companies from Disney to Salesforce.com considered the acquisition of Twitter in the past but withdrew. When Musk raises funds, most Wall Streeters seem to think the board should jump on his bandwagon, which is rich in business that despite being a well-known brand that has struggled to grow and generate rational cash flow.
Billion Musk is the richest man in the world, but the deal, which costs Twitter $ 43 billion, could be difficult to close even for him. He stressed that he would be able to raise money. Musk has hired Morgan Stanley as a mentor. Twitter has retained Goldman Sachs.
Musk also pointed out in another tweet that the Twitter board may not have a choice. "I loved the tender," he wrote, quoting Elvis Presley, and pointing out that a cruel tender promise might come. That is a donation to buy shares of a company made directly from its shareholders, to avoid management.
Some analysts including Tesla were not very happy with Musk's new disruption, as he already has a good full-fledged tablet that directs Tesla's business, SpaceX and several others.
Musk has made himself an advocate for freedom of speech, speaking last week about the need to promote democracy in the US and abroad by reducing content ratings on Twitter.
