Australia’s tech investors believe Elon Musk’s spurned takeover offer for Twitter does not reflect the true value inherent in the business were it to be run successfully, as the battle for control of the platform balloons into a social media circus.Alex Pollak of Loftus Peak.Tesla entrepreneur Mr Musk has already acquired a 9.1 per cent stake in Twitter and his full takeover bid lobbed on April 14 values it at $US43 billion or $US54.20 a share.
“But I think it falls a long way short of fair value for a Twitter run more intelligently and with a sharper focus on shareholder wealth creation.” On Tuesday, Mr Musk attacked the Twitter board for not being aligned to shareholders, after it rejected his bid and prepared a “poison pill” defence that could dilute the value of Mr Musk’s stake by granting rights to other investors to buy shares at a discount.John Lobb, a portfolio manager at Insync Funds Management, said the stock’s surge meant it was now expensive on conventional valuation metrics.
“The board has asked him to join them and what he said was no, F-off. The board is worried that Musk’s plan is to break the delicate thing that Twitter is.”Earlier, Twitter’s founder and former chief executive Jack Dorsey took to the platform to deny it suppressed news around allegedly incriminating information on the laptop of Hunter Biden, the son of US President Joe Biden, before the 2020 presidential election.
Twitter is a loss making machine using old decentralised tech that will be smashed by decentralised social media platforms, legislation and declining advertising revenues. Valuation. Short the stock.
Was this guy buying when it was in the 30s a week or so ago?
Greedy guy
It's up 17 % since ipo, I think the offer is overs
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