> Eventually there is going to be a proxy statement for this merger, and in effect Twitter’s board will say to shareholders “you should take this deal because $54.20 in cash is more than Twitter’s stock is worth.” Meanwhile Musk is going out to potential equity investors and saying the opposite: “Chip in some money because this thing is worth more than $54.20.” If a select few of Twitter’s existing big shareholders — perhaps including Jack Dorsey, a board member who ran Twitter for years and voted for the deal — are offered the chance to stick around, and take it, then that undermines the logic of the deal. “Elon Musk can make Twitter vastly more valuable than $54.20 per share, but not for you” is not a great message for the board to send to most of its shareholders.
There's a weird energy with every financial instrument: "Come buy this from me because it's worth more than I'm selling it, but I myself somehow don't want to make that profit."
You see that with gold, which even has TV commercials: "Gold is so valuable! Make a profit! Take mine!"
In Musk's case it's not clear that he even wants to make a profit. I don't understand Twitter so I can't even begin to guess what he sees in it. It seems to me he wants to use it to set the tone of the national conversation rather than make money. Perhaps he can do both, but I have no idea how.
https://www.bloomberg.com/opinion/articles/2022-05-03/citi-d...
> Eventually there is going to be a proxy statement for this merger, and in effect Twitter’s board will say to shareholders “you should take this deal because $54.20 in cash is more than Twitter’s stock is worth.” Meanwhile Musk is going out to potential equity investors and saying the opposite: “Chip in some money because this thing is worth more than $54.20.” If a select few of Twitter’s existing big shareholders — perhaps including Jack Dorsey, a board member who ran Twitter for years and voted for the deal — are offered the chance to stick around, and take it, then that undermines the logic of the deal. “Elon Musk can make Twitter vastly more valuable than $54.20 per share, but not for you” is not a great message for the board to send to most of its shareholders.