Skip to content

“Check Mate”: Here’s How Elon Just Put Twitter in a Major Bind

Elon has offered the Twitter board a massive amount for the platform, many billions of dollars that are at a steep premium to what the company is currently worth and far more than it was worth before speculation and buying increased when he announced his 9% stake. In fact, as Tim Young pointed out, he’s offering a premium so large that they couldn’t turn it down for financial reasons:

Elon Musk is offering almost $9 more a share for Twitter than yesterday’s closing price to buy all of it… only a fool or someone intentionally trying to limit free speech in the world would turn that down.

So, if the Twitter board turns down his whopper of an offer, as it very well appears they might, that will create a big problem for the company.

Why? Because the Board of Directors, and company generally, is supposed to maximize shareholder value, not do anything and everything it can to keep the American populace censored. Companies are supposed to deliver returns, not act like the Stasi.

Thus, if the Board of Directors shoots down Elon’s bid, it obviously won’t be doing so for financial reasons, and thus will give interested stockholders and opening to start suing, as was also pointed out on Twitter:

Seems Elon has Twítter in check mate. Either they sell or they blatantly go against their mandate to maximize shareholder value, which even the most liberal judge couldn’t dispute.

Twitter management job is to make share holders money. Elon is offering a quick 38% and they are going to fight that. Another myth of capitalism on display right now. These public markets are frauds. Twitter execs would be marched into jail under a functioning free market system.

Will the Red Wave come crashing down on the Democrat's heads in November?(Required)
This poll gives you free access to our premium politics newsletter. Unsubscribe at any time.
This field is for validation purposes and should be left unchanged.

Particularly, Twitter’s board is in a bind because Elon a) owns nearly 10% of the company’s stock and b) is the reason the stock has shot up over the past few days.

So, were it to brush him off or otherwise piss him off, all he’d have to do is put up his 9% of the company for sale at once and, so long as he was willing to take a haircut on what he paid, he could tank the stock price.

As a result, not only would shareholders miss out on a $9 per share premium for their shares, but their shares would be worth far less because of a price crash. And the Board of Directors wanting to censor accounts with cartoon frogs as avatars would be to blame.

The board has two real options now. It can 1) accept a bit of fury from the leftist media and just sell Elon the company for a massive premium, thus fulfilling their fiduciary obligation to shareholders, or 2) try to fight back and risk watching the share price tumble and their personal fortunes evaporate in a wave of lawsuits.

Which will they choose? We’ll see. The answer will depend on whether they fear ridicule from the left or whatever legal hell Elon and pissed off shareholders can create for them more. Elon himself recognized that, saying:

The answer should be obvious, but these are the people that have let the platform run itself into the ground by censoring everyone with a controversial opinion, so maybe they’ll go with the “legal hell” path to avoid Joy Reid getting angry at them.

By: Gen Z Conservative, editor of Follow me on Parler and Gettr.