{"id":1437814,"date":"2022-04-14T12:30:47","date_gmt":"2022-04-14T16:30:47","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1437814"},"modified":"2022-04-14T12:31:07","modified_gmt":"2022-04-14T16:31:07","slug":"its-get-out-the-popcorn-time-musk-could-buy-twitter-even-if-his-offer-is-refused-heres-how","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/its-get-out-the-popcorn-time-musk-could-buy-twitter-even-if-his-offer-is-refused-heres-how\/","title":{"rendered":"\u2018It\u2019s Get-Out-The-Popcorn Time\u2019: Musk Could Buy Twitter Even If His Offer Is Refused. Here\u2019s How."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fits-get-out-the-popcorn-time-musk-could-buy-twitter-even-if-his-offer-is-refused-heres-how%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1437814&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/dw-wp-production.imgix.net\/2022\/04\/GettyImages-1343743220-scaled.jpg?w=1200&#038;h=800&#038;ixlib=react-9.3.0\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<p>Even if Twitter\u2019s board rejects Elon Musk\u2019s proposal to buy the company, Musk could still target stockholders by either seeking proxy votes or purchasing their shares in a so-called \u201chostile takeover,\u201d thus taking over the company.<\/p>\n<p>A hostile takeover occurs when an outside entity tries to take over a company without the management\u2019s consent.<\/p>\n<p>On Thursday morning, Musk tendered an offer of $54.20 per share; the current market price of Twitter is $45.85 per share. Musk could make that offer directly to shareholders if Twitter\u2019s board rejects the offer. \u201cInvestopedia notes that shareholders often accept the tender offer when it is a \u2018sufficient premium to market value or if they are unhappy with current management,\u201d <a href=\"https:\/\/www.dailymail.co.uk\/news\/article-10718605\/How-Elon-Musk-buy-Twitter-offering-shareholders-generous-price-stock.html\">the Daily Mail<\/a> noted.<\/p>\n<p>Another avenue Musk could take: encouraging stockholders to urge other stockholders to let them use their proxy votes, then, having gathered enough proxies, having them vote to accept Musk\u2019s offer.<\/p>\n<p>But Twitter could conceivably respond by issuing blank check preferred stock to defend itself from a hostile takeover.<\/p>\n<p>Investopedia <a href=\"https:\/\/www.investopedia.com\/terms\/b\/blankcheckpreferred.asp\">explains<\/a>:<\/p>\n<blockquote>\n<p><em>Blank check preferred stock is a method companies use to simplify the process of creating new classes of\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/p\/preferredstock.asp\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"1\">preferred stock<\/a>\u00a0and to raise additional funds from\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/s\/sophisticatedinvestor.asp\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"2\">sophisticated investors<\/a>\u00a0without obtaining separate shareholder approval. In effect, a company\u2019s shareholders pre-approve the new class to be issued at some point in the future, and then the firm\u2019s\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/b\/boardofdirectors.asp\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"3\">board of directors<\/a>\u00a0(BoD) has broad discretion in when and how to issue them. This kind of stock can also be created by a public company as a takeover defense in the event of a\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/h\/hostile-bid.asp\" data-component=\"link\" data-source=\"inlineLink\" data-type=\"internalLink\" data-ordinal=\"1\">hostile bid<\/a>\u00a0for the company.<\/em><\/p>\n<\/blockquote>\n<p>\u201cTo do issue blank check preferred stock, a company must amend its\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/a\/articlesofincorporation.asp\">articles of incorporation<\/a>\u00a0to create a new class of unissued shares of preferred stock whose terms and conditions may be expressly determined by the company\u2019s board of directors,\u201d Investopedia adds.<\/p>\n<p>\u201cTwitter doesn\u2019t have the dual-share classes that many public tech companies (Meta, Alphabet, Snap) do,\u201d <a href=\"https:\/\/www.forbes.com\/sites\/abrambrown\/2022\/04\/11\/elon-musk-is-poised-for-a-hostile-takeover-against-twitter\/?sh=7b279ace74be\">Forbes<\/a> noted. \u201cThose systems leave voting rights\u2014control\u2014with a company\u2019s founders, protecting them against a Musk. Without this, Twitter could adopt a so-called poison pill plan, a costly move where it sells stock at a discount to dilute an aggressive shareholder\u2019s stake.\u201d<\/p>\n<p>Analyst Dan Ives told <a href=\"https:\/\/www.washingtonpost.com\/technology\/2022\/04\/14\/elon-musk-twitter-takeover-bid\/\">The Washington Post<\/a>, \u201cThe next step will be Twitter\u2019s Board officially reviewing the Musk filing\/letter and then it\u2019s get-out-the-popcorn time as we expect many twists and turns in the weeks ahead as Twitter and Musk walk down this marriage path.\u201d<\/p>\n<p>According to an <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1418091\/000110465922045641\/tm2212748d1_sc13da.htm\">SEC filing<\/a> submitted Wednesday evening, Musk told Twitter Chairman Bret Taylor:<\/p>\n<blockquote>\n<p><em>I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.\u00a0<\/em><em>Twitter has extraordinary potential. I will unlock it.<\/em><\/p>\n<\/blockquote>\n<p><em>The Daily Wire is one of America\u2019s fastest growing conservative media companies for breaking news, investigative reporting, sports, podcasts, in-depth analysis, books, and entertainment for a reason: because we believe in what we do. We believe in our country, in the value of truth and the freedom to speak it, and in the right to challenge tyranny wherever we see it. Believe the same?\u00a0<\/em><a href=\"https:\/\/www.dailywire.com\/subscribe\"><em>Become a member now and join our mission.<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Even if Twitter\u2019s board rejects Elon Musk\u2019s proposal to buy the company, Musk could still target stockholders by either seeking proxy votes or purchasing their shares in a so-called \u201chostile<\/p>\n","protected":false},"author":60,"featured_media":2315279,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1437814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1437814","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/60"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1437814"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1437814\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1437814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1437814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1437814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}