undefined | Better HN

0 pointshef198983y ago0 comments

If I were a former Twitter shareholder, I'd be extremely grateful to the board for selling the whole thing for 44 Bn. No way tje company would have reached this evaluation without Musk. And Musk knew it, he just signed himself a contract he couldn't het out of.

0 comments

RC_ITR3y ago

As a nit, Twitter traded well above $44bn for good portions of 2021.

It was arguably even a fair price when he offered it (acquisition always have premiums), the market just turned.

hef19898OP3y ago

So, shareholders got paid the pre-downturn price after the downturn? At a time big tech went down double 10+%? Sounds like an incredibly good deal to me.

RC_ITR3y ago

Yeah it was.

But now $44bn is the cost basis for all the current shareholders, so Elon has to make returns against that.

hef19898OP3y ago

If pre-acquisition shareholders choose to stick around after that windfall, well, that there problem. And Elon's.

j / k navigate · click thread line to collapse

0 comments

RC_ITR3y ago

As a nit, Twitter traded well above $44bn for good portions of 2021.

It was arguably even a fair price when he offered it (acquisition always have premiums), the market just turned.

hef19898OP3y ago

So, shareholders got paid the pre-downturn price after the downturn? At a time big tech went down double 10+%? Sounds like an incredibly good deal to me.

RC_ITR3y ago

Yeah it was.

But now $44bn is the cost basis for all the current shareholders, so Elon has to make returns against that.

hef19898OP3y ago

If pre-acquisition shareholders choose to stick around after that windfall, well, that there problem. And Elon's.

j / k navigate · click thread line to collapse