Elon Musk's offer to take Twitter Inc. TWTR private has stirred apprehensions all around. Twitter users are worried about whether they can operate on the platform without being abused and bullied for holding differing opinions, while shareholders are worried about whether they would be adequately compensated for the stake they hold in the company.
What Happened: Allaying some of the doubts, Musk suggested he will do his best to allow those wanting to keep their Twitter holding in the new private company. He was responding to a tweet by Ross Gerber, co-founder of Gerber Kawasaki Wealth and Investment Management, tagging him.
Will do our best
— Elon Musk (@elonmusk) May 2, 2022
Why It Matters: The Tesla Inc TSLA CEO's reply was along the lines of the view he shared at a TED event in Vancouver in mid-April. He had said then he intends to retain as many shareholders as is allowed by the law in a private company. The number allowed will be 2,000, or 500 if the shareholders aren't accredited investors, or high-net-worth individuals, according to Bloomberg.
The report also suggested that everyone in the shareholder rooster, including its founders, institutional investors, and retail investors, can choose to either hand over the shares for the $54.20 offer price or roll over the stakes into the private company. Gerber's firm, which holds about 9,000 shares in Twitter, had previously termed Musk's offer as low and said no shareholder will lap up the offer. Twitter closed Monday's session up 0.24% at $49.14, according to Benzinga Pro data.
Related Link: Elon Musk Plans Crusade On Twitter Spam And Bots — New Data Reveals The Size Of His Problem
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
