The folks over at Twitter are playing checkers while Elon Musk and his $222 billion dollars is playing chess. His offer to buy Twitter outright isn’t the only game in town. He has a Plan B and I’m willing to bet that his Plan B is better than Twitter’s Plan A. Twitter hired Goldman Sachs to say that Musk’s offer was not enough.
But as Musk pointed out, Goldman Sachs had issued a sell advisory when Twitter stock was selling for about $30 dollars a share. Those two opinions do not mesh. If you should sell for $30 dollars a share, why wouldn’t you sell at $54? Twitter has also floated the idea of issuing massive amounts of stock for Twitter which would make the cost of buying the company too high. But, that would hurt current stockholders.
Twitter CEO Parag Agrawal tried to calm the company’s employees during an emergency all-hands meeting as the far leftists have become deathly afraid that free speech could prevail. And, although he projected a positive message, his words left the possibility that Musk could buy the entire company, which had employees defecating green, I’m sure. No longer could they remove anyone’s free speech rights.
One Twitter employee claimed that Musk trying to buy Twitter stock at far above its market value is a hostage situation. Agrawal said it didn’t feel like the company was being held, hostage. And indeed it isn’t. He has made a generous offer, but he has made no effort to compel people to sell other than the fact he could sell his stock and send its value tumbling. Twitter stock has risen to $45 dollars a share based on Musk’s actions, but he is still offering a nine-dollar a share premium for the stock.
Musk revealed during a TED Talk on Thursday afternoon that he has a backup plan if Twitter rejects his bid to buy the company.
“If in this case you are not successful in that the board does not accept your offer, you’ve said you won’t go higher, is there a plan B?” Musk was asked.
“There is,” Musk responded while smiling.
When asked what his backup plan is, Musk said he would discuss that at another time.
“I think it’s very important for there to be an inclusive arena for free speech,” Musk said during the event. “Twitter has become kind of the de facto town square, so it’s really important that people have both the reality and perception that they’re able to speak freely within the bounds of the law.”
Musk said that Twitter needed to make its algorithm open sourced and that any action the company takes against tweets needs to be thoroughly explained to the public to stop “behind the scenes manipulation” on the platform by the company.
Musk still has the option of building a competing site and that would hurt Twitter in the pocketbook.