[실리콘밸리=뉴스핌]Correspondent Kim Na-rae = Tesla CEO Elon Musk, who is taking over Twitter, tweeted the title of singer Elvis Presley’s song ‘Love Me Tender’, implying the possibility of a stock tender offer.
According to Archyde.com and Bloomberg on the 18th (local time), CEO Musk tweeted this to his Twitter account. Although the meaning of Elvis’ song is ‘Please love me tenderly’, the word tender also has other meanings, such as a bid or offer, and there are observations that a tender offer can be made.
Foreign media also revealed that a tender offer refers to a stock tender that directly purchases stocks from an unspecified number of shareholders in order to secure management rights.
| Elon Musk, Tesla CEO.[사진=블룸버그] 2022.03.22 [email protected] |
Musk announced on the 14th that it was planning to acquire Twitter for $43 billion, but Twitter’s board of directors reacted to this and activated a poison pill, a strategy to defend its control. The poison pill gives existing shareholders the right to purchase new shares at a price lower than the market price.
As the acquisition of Twitter becomes difficult, some analysts say that Musk may seek to secure a stake in other shareholders. Musk owns a 9.2% stake in Twitter.
Twitter co-founder and former CEO Jack Dorsey tweeted on the 16th criticizing Twitter management. “Twitter management was the company’s handicap,” said Dorsey, the former CEO, who remains a member of the Twitter board.
Meanwhile, Twitter shares rose 2.1% from the previous trading day to $46.03, much lower than Musk’s suggested $54.20 per share. The company’s stock has risen regarding 15% since Musk went public on April 4th.