Twitter stock is up and trading at $43.21 as of 10:04 AM EDT.
Elon Musk abruptly changed his mind about joining the board of Twitter (NYSE:TWTR), staying off the board, and launching a go-private offer instead. The CEO of Germany’s Axel Springer urged Musk to buy the company and “we run it for you,” and Musk was inundated with texts from billionaires and friends about what he should do to take control and fix the business.
These are some of the revelations made when a number of exhibits from Twitter v. Musk et al. were made available to the public. The papers were discussed during a protracted open hearing held in the lawsuit on Tuesday to address concerns regarding pretrial discovery.
In a dramatic text conversation with CEO Parag Agrawal on the fateful April 9 day, when Musk’s board seat on Twitter was scheduled to take effect, Musk changed his mind about it. That day, Agrawal wrote Musk and said, “You are welcome to tweet ‘Is Twitter dying?’ or anything else about Twitter – but it’s my obligation to warn you that it’s not helping me make Twitter better in the current environment.” Agrawal cited a “degree of internal distraction right now” that is “hurting our ability to accomplish work.”
Musk’s “ask me anything” presentation, in Agrawal’s words, might help Twitter “get to a place where we are more resilient and don’t get distracted, but we aren’t there right now,” he added.
What was accomplished this week? Musk retaliated. “I’m not a board member. This is a time waster. a proposal to take Twitter private.”
“It won’t work to fix Twitter by talking with Parag. Strong action is required, “Minutes later, Musk texted Bret Taylor, the CEO of Twitter. “Restructuring should be done as a private corporation because it is difficult to do as a publicly traded company because eliminating fraudulent users will make the numbers look horrible.” (Musk then attempted to cancel the acquisition contract, claiming that there had been “false and deceptive claims” regarding the volume of fake/spam users.)
Musk and Agrawal finally met in late April after a last-ditch push by Twitter co-founder Jack Dorsey to “build towards your goals till close.” The conference did not proceed as expected.
“I completely concur with you. Simply put, Parag is moving too slowly and making efforts to appease those who will never be satisfied “After the meeting, Musk texted Dorsey.
“At least it became obvious that you cannot cooperate. That gave further details “Musk was retorted by Dorsey. The text dump also included the previously reported text from Dorsey on March 26 informing Musk that he would be leaving the board and the company “I’m going to finish this task and correct our errors. Initially, Twitter was a protocol. It ought not to have been a corporation. The original sin was that.” Musk answered a minute later, saying, “I’d want to help if I can.”
Musk obtained a copy of a Twitter Cooperation Agreement on April 4 at 1:42 p.m. ET while considering joining the board. Three hours later, he texted Taylor and a few other people. “After some consideration, I realized that my existing time commitments would prevent me from serving on the board effectively.” Musk agreed once more to join the board the following day (in a revised agreement).
Popular podcaster Joe Rogan sent Musk a text message asking, “Are you going to liberate Twitter from the censorship happy mob?” that same afternoon. When Larry Ellison, the co-founder and executive chairman of Oracle (ORCL), expressed interest, Musk texted him “What general monetary amount? I’m not holding you to anything, but I have to reduce or exclude some participants because the deal is oversubscribed.”
Twitter Stock Outlook
As Twitter gets closer to releasing its next round of earnings, investors will be hoping for growth. Analysts anticipate that Twitter will report earnings of $0.02 per share. This would represent a 103.7% gain from the previous year. The most recent consensus estimate we have is for quarterly revenue to be $1.32 billion, an increase of 2.99% from the prior quarter. The Zacks Consensus Estimates for TWTR’s full-year predict earnings of $1.24 per share and revenue of $5.42 billion. These outcomes would indicate annual changes of +520% and +6.66%, respectively.
Featured Image- Megapixl @ Dolphfyn