Like I don’t get it, he owns 9% of the shares, doesn’t he still need like 42% of other shareholders to vote in in as CEO? So isn’t he still subject to the will of the other shareholders? 🤔
(Disclaimer: I have no idea how this works, which is why I’m asking)
So Musk owns twitter so there is no stock anymore. He does have loans for the purchase which are probably backed by his twitter ownership and his Tesla stock.
However there is another way to not have majority ownership and still have majority voting power. Google has class A and class B shares. Each class A share gets 10 votes and class B shares get 1 vote.
Only the founders of Google got class A shares and if they are transferred to anyone but another founder they revert to class B shares. So they have a minority ownership and a majority vote.
Twitter still has shares, they just aren’t publicly traded
Your right. I thought the shares had be dissolved but they have not it’s just a privately traded company now.
It’s possible the shares were dissolved and some wholly new arrangement was made as a newly private company.
Companies can have shares in multiple ways. For example, voting and non-voting.
Alternately, a company can have shares that get more votes then others, so the owner of a company could, say, have 10% of shares, but those shares have 10x voting power. Thats how the WWE used to be before it was bought out.
The business magnate Elon Musk initiated an acquisition of American social media company Twitter, Inc. on April 14, 2022, and concluded it on October 27, 2022. Musk had begun buying shares of the company in January 2022, becoming its largest shareholder by April with a 9.1 percent ownership stake. Twitter invited Musk to join its board of directors, an offer he initially accepted before declining. On April 14, Musk made an unsolicited offer to purchase the company, to which Twitter’s board responded with a “poison pill” strategy to resist a hostile takeover before unanimously accepting Musk’s buyout offer of $44 billion on April 25.
The Company isnt publicly traded anymore, so he bought the entire thing. 9% was just the start.
Thank you for stating it directly and clearly.
So the question is was this copy pasted from some needlessly verbose article, or is this a LLM “enhanced” answer?
Ex-Twitter isn’t a good example of how shares work in general. For this company, I recommend the wiki here: https://en.m.wikipedia.org/wiki/X_Corp.
To your other question: if you own >50% then the others have no real say anymore. If you own less than 50% then you can still try to convince them of your ideas, and in practice, there is often one who commands and the others follow.
