Twitter Closes Down on Session as Musk Calls for Shareholder Vote

Twitter (TWTR) lost ground today, closing at $45.08 versus Elon Musk’s cash offer of $54.20, as speculation grew about whether the board would approve of a sale to the Tesla CEO.

• Saudi Arabian Prince and major Twitter shareholder Alwaheed bin Talad voiced his opposition to Musk’s offer in a tweet, to which Musk responded in-kind by asking exactly how much Twitter the Saudis own and questioning the Kingdom’s views on freedom of speech.
• The Tesla chief also tweeted about the importance of allowing a vote on his bid, reminding “[the shareholders] own the company, not the board of directors.”
• Strike CEO Jack Mallers told CNBC that he supports Musk’s purchase of the company, particularly if it means implementing cryptocurrency into the app. “With the right leadership, Twitter could become a payments business,” said Mallers.
• Musk also happened to be speaking today at the TED2022 in Vancouver, Canada, where he expressed his desire for less regulation and more protections for freedom of speech.
• Looking at development’s from Twitter’s side, the board met at 10 AM ET this morning, but other than some loose chatter regarding discussions of adopting a poison pill defense, nothing tangible has yet leaked. Twitter also scheduled a company town hall for 5 PM ET.
• Meanwhile, the NYPost reports private equity firm Thoma Bravo is looking into putting in its own bid for the company.
• The share action today suggests the market is skeptical about Musk winning the company, with the stock price actually falling during the regular session to close down 1.7% at $45.08 versus Musk’s offer of $54.20. Shares are up 3.5% in after hours trade to $46.67.