Where on earth do you get that
$70 is insane, Twitter will likely never reach that again, it for sure will not under current leadership. Twitters current leadership is killing the platform
I don’t think it is the majority — I think he needs all of them. Anything less than 100% and he’d have to worry about fiduciary duty to minority shareholders. And if taking a company private, you need to have all of the shareholders on board.
I might not fully understand this dynamic, but I thought that was the reason why he wanted to buy 100% and not just a controlling interest.
Such transaction must be put to vote by shareholders and only a majority needs to approve.
But, Musk has stated that he wanted to take Twitter private. Doesn't that change the calculations somewhat? I mean, you want to buy all of the shares at once, otherwise, how do you determine the fair market price for the last hold-out shares? They would be worth more that the early sellers.
I guess I'm saying that because he has a stated interest in taking the company private, this is more complicated than a traditional M&A event. (Hence why it may not be worth it to do this as a hostile takeover).
I think the threshold for forced buy-out tends to be >90%.
Stocks are not commodities, offer is highly inelastic. They are precisely limited and traded as such. Especially when we are talking about profitable and political-weight-size media company.