• About Us
  • Contact Us
  • Cookie policy (EU)
  • Home
  • Privacy Policy
  • Video
  • Write for us
Today Headline
  • HOME
  • NEWS
    • POLITICS
    • News for today
    • Borisov news
  • FINANCE
    • Business
    • Insurance
  • Video
  • TECHNOLOGY
  • ENTERPRISE
  • LIFESTYLE
    • TRAVEL
    • HEALTH
    • ENTERTAINMENT
  • AUTOMOTIVE
  • SPORTS
  • Travel and Tourism
  • HOME
  • NEWS
    • POLITICS
    • News for today
    • Borisov news
  • FINANCE
    • Business
    • Insurance
  • Video
  • TECHNOLOGY
  • ENTERPRISE
  • LIFESTYLE
    • TRAVEL
    • HEALTH
    • ENTERTAINMENT
  • AUTOMOTIVE
  • SPORTS
  • Travel and Tourism
No Result
View All Result
TodayHeadline
No Result
View All Result

Opinion: Twitter’s board owes it to shareholders to accept Elon Musk’s offer

April 15, 2022
in Business
0
Opinion: Twitter’s board owes it to shareholders to accept Elon Musk’s offer
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter


Elon Musk’s take-it-or-leave-it offer of $54.20 per share for Twitter is a fantastic deal for shareholders.

The Twitter
TWTR,
-1.68%
board must seriously consider shareholder value and whether Musk’s generous takeover offer – the stock closed at $45.85 on Wednesday — is financially better for shareholders than a company that is adrift as Twitter continues to fail to monetize its business.

I strongly advise the Twitter board to accept Musk’s offer. Otherwise class-action lawsuits against Twitter and its board will likely be relentless, which in turn, will cause its stock price to collapse to $20 or less per share.

Ever since Jack Dorsey left Twitter, the company has been adrift and unable to properly monetize its increasing sales growth. As an example, the analyst community for the first quarter is forecasting that Twitter’s first-quarter sales will rise 19.3% to $1.23 billion, while its earnings will decline 81.2% to only 3 cents per share.

In the past three months, the analyst community has slashed their consensus earnings estimate 82.4%. Typically, negative analyst earnings revisions precede earnings disappointments. Unfortunately, Twitter posted 460% and 5.7% earnings disappointments in the third and fourth quarters, respectively.

The Twitter board’s decision basically comes down to either rewarding shareholders financially through this offer or pursuing a woke and ESG transformation of the company.

To my knowledge, there has never been shareholder class-action lawsuit that pitted a board’s decision of ignoring shareholder value to promote an increasingly woke and ESG mandate regarding gender and racial comments that can get users kicked off Twitter.

In the end, the Twitter board must cover their butts and in the end side with shareholder value. In fact, I am certain the errors and omission (E&O) insurance for the Twitter board of directors will not protect them from a class-action lawsuit if they reject Musk’s offer.

More: If Musk’s $43 billion Twitter bid falls apart, who else has enough money to buy the company?

Plus: Elon Musk says Twitter shareholders should ‘love’ his buyout offer, but Wall Street doesn’t seem to agree

The transformation of Twitter under Elon Musk will likely be very exciting, since the Twitter platform will likely be reopened to users that were previously kicked off (such as Donald Trump) and controversial statements will likely explode. Elon Musk described Twitter as a “war zone” to 60 Minutes’ Lesley Stahl, and he seems to enjoy fighting via Twitter.

Obviously, Elon Musk has very strong opinions and wants to express them more vocally via Twitter than he already does. There is no doubt in my mind that Twitter will explode in popularity under Musk, since he is the most provocative and interesting Twitter participant. And the company will turn that increased traffic into fatter profits.

Plus: Twitter gave rise to Elon Musk’s fame, and amplified his ideas

Right now there is a leadership vacuum in the world, and people are furious over the recent inflation surge. Musk has (1) proposed solutions, (2) wants to be taken more seriously and (3) is tired of being ignored by the ruling elite.

If you wonder why the richest man in the world is so perturbed, it many have something to do with the fact that when California Gov. Gavin Newsom and President Joe Biden promoted electric vehicles (EVs), Musk and his Tesla EVs weren’t included because he has been critical of California’s leadership and his manufacturing plants in the U.S. are non-union.

With Musk loosening Twitter’s rules on free speech, the only risk he will face is government censorship. Interestingly, Musk has an excellent relationship with China, so if anyone can navigate the censorship in China, it will be him. All societies have to prosper, otherwise they run the risk of a collapse or regime change. China has been fighting economic wars for some time and has teamed up with Musk to become increasingly dominate in EVs. Musk also has said positive things about China and its leadership. So I think this will be less of a problem that you might think.

I am personally looking forward to Elon Musk leading Twitter and free expression throughout the world, with minimal censorship.

Louis Navellier is the founder and chief investment officer of Navellier & Associates.

More on MarketWatch

Here’s how Elon Musk’s buyout offer for Twitter stacks up to what he paid for his stake

Elon Musk’s Twitter bid may tempt retail investors to ‘buy the rumor, sell the news’ — Here’s what financial advisers suggest instead

Tags: acceptboardElonMusksOfferOpinionowesshareholdersTwitters
Previous Post

Paolo Banchero’s NIL Valuation Has Exploded After Leading Duke to the Final Four

Next Post

Titanic Secrets and Little-Known Facts

Related Posts

Unfair TfL ULEZ charges: Private number plate triggers mistake
Business

Unfair TfL ULEZ charges: Private number plate triggers mistake

A business owner has been...

Read more
Business

Cash in on cashback: shop around for the best deals | Money

With many finances so tight,...

Read more
Gold ends at a nearly 2-week low as hints of progress in Russia-Ukraine talks crimp haven demand
Business

Gold books 3-day winning streak after notching first weekly gain in a month

Gold futures closed modestly higher...

Read more
Pitney Bowes: Upside Potential Thanks To Digital Innovation (NYSE:PBI)
Business

Pitney Bowes: Upside Potential Thanks To Digital Innovation (NYSE:PBI)

metamorworks/iStock via Getty Images Pitney...

Read more
My wife is denied state pension but was a ‘stay at home’ mother, is that fair?
Business

My wife is denied state pension but was a ‘stay at home’ mother, is that fair?

My wife was a 'stay...

Read more
Load More
Next Post
Titanic Secrets and Little-Known Facts

Titanic Secrets and Little-Known Facts

  • Trending
  • Comments
  • Latest
Thousands of Deaths and Adverse Reactions Deleted From VAERS – The Epoch Times

Thousands of Deaths and Adverse Reactions Deleted From VAERS – The Epoch Times

Sex/Life fans notice a HUGE editing fail in Adam Demos’ nude shower scene –

Sex/Life fans notice a HUGE editing fail in Adam Demos’ nude shower scene –

Over 200 people being monitored for monkeypox in Massachusetts – New York Post

Over 200 people being monitored for monkeypox in Massachusetts – New York Post

CDC believes NYC monkeypox case is real, says 5 incidents overall in US – Gothamist

CDC believes NYC monkeypox case is real, says 5 incidents overall in US – Gothamist

This Is Us Finale Recap: Season 6, Episode 18 — Rebeccas Funeral – TVLine

This Is Us Finale Recap: Season 6, Episode 18 — Rebeccas Funeral – TVLine

Steve Kerr slams senators after Uvalde school shooting – The Washington Post

Steve Kerr slams senators after Uvalde school shooting – The Washington Post

Kemp will defeat Trump-backed Perdue in Georgias GOP gubernatorial primary, CNN projects – CNN

Kemp will defeat Trump-backed Perdue in Georgias GOP gubernatorial primary, CNN projects – CNN

One previous UK patient had monkeypox in body for 76 days – Daily Mail

One previous UK patient had monkeypox in body for 76 days – Daily Mail

About Us

Todayheadline the independent news and topics discovery
A home-grown and independent news and topic aggregation . displays breaking news linking to news websites all around the world.

Follow Us

Latest News

This Is Us Finale Recap: Season 6, Episode 18 — Rebeccas Funeral – TVLine

This Is Us Finale Recap: Season 6, Episode 18 — Rebeccas Funeral – TVLine

Steve Kerr slams senators after Uvalde school shooting – The Washington Post

Steve Kerr slams senators after Uvalde school shooting – The Washington Post

This Is Us Finale Recap: Season 6, Episode 18 — Rebeccas Funeral – TVLine

This Is Us Finale Recap: Season 6, Episode 18 — Rebeccas Funeral – TVLine

Steve Kerr slams senators after Uvalde school shooting – The Washington Post

Steve Kerr slams senators after Uvalde school shooting – The Washington Post

Kemp will defeat Trump-backed Perdue in Georgias GOP gubernatorial primary, CNN projects – CNN

Kemp will defeat Trump-backed Perdue in Georgias GOP gubernatorial primary, CNN projects – CNN

  • Real Estate
  • Education
  • Parenting
  • Cooking
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

No Result
View All Result
  • Real Estate
  • Education
  • Parenting
  • Cooking
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2021 All rights are reserved Todayheadline

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Posting....