Twitter users say they won’t leave the platform if Elon Musk takes over: Yahoo Finance poll

Yahoo Finance’s Akiko Fujita and Brian Cheung explore Tesla CEO Elon Musk building an supply to buy Twitter.

Online video Transcript

BRIAN CHEUNG: But of system, the large story du jour is Twitter. We were following this story more than the final couple months. And yet again, Elon Musk bought a stake. He was likely to be part of the board. Then he didn’t be part of the board. And the massive news dropping this morning, as disclosed by way of an SEC submitting, he just needs to invest in the full darn detail now. $54.20 a share, all money. 4.20– get it?

And he says that it is really either his way or the freeway. He’ll rethink having any stake at all if the board says no. And it is really important to be aware that Twitter has acknowledged the present this morning. Apparently, the board achieved about an hour ago, is what CNBC described. We have not gotten any information on what arrived out of that conference, but Akiko, this has gotten a lot of notice on Twitter alone this morning.

AKIKO FUJITA: Yeah, no question about that, Brian. Let’s converse about the inventory shift 1st of all since when we very first listened to of this information this early morning, pre-market, we observed it up about 12%. And it feels like in excess of the very last few several hours, we’ve gone from, yay, Elon Musk is obtaining the company, to, hold out a next, what is the plan here? And so now we are observing it occur off of these highs, up about 1.7%.

And you can find still a great deal of issues out there. Ahead of every person goes out and claims, Twitter is going to remodel now that Elon Musk has ordered the company, selection a person, what is the system? Why purchase the business? We have not heard from Elon Musk on that front. We have read him say he doesn’t want to go with the income model per se, but if you have received no income or an advertisement design, I need to say, exactly where does the earnings come from?

The other concern here, Brian, is, how does he finance this? Sure, he is among the the richest persons in the globe, but we’re conversing about additional than $40 billion. Is he presently in talks with other VCs and traders probably? And then the other query is, you talked about the board conference this early morning reportedly, according to CNBC, is Twitter likely to store the company all around to other people today? And that, to me, is the most interesting dilemma on that front.

Mark Cuban, no surprise, weighing in on this morning, saying Elon may possibly have begun this, but his danger to sell his shares, if Twitter states no, opened the door for these tech giants to walk in for comparatively minimal cash and get enormous influence at Twitter, or potentially a direct path to acquisition. Elon will smile all the way to the lender.

So Brian, it is not for us to speculate who’s actually heading to come in and bid for the company past Elon Musk, but that is an intriguing proposition simply because the board does now have a duty to do what is in the ideal pursuits of shareholders. If we are conversing $54.20 a share, is that in the ideal curiosity? And if not, are they heading to go question close to to see if any individual else is intrigued?

BRIAN CHEUNG: I mean, this sort of suits with some of the narrative that I was listening to in the instant aftermath of the information earlier this early morning that it’s possible this is a way that Elon can get out not gracefully for each se, but have some sort of easy to understand exit out of this enterprise. You place 1 massive bid out there, and you say, it is really possibly my way or the highway. And if they do not get it, you can use that as your out to say, nicely, I am just likely to get out of the 9% stake that I really do have ideal now. And then this entire episode can come to an conclude.

But that is only if you suppose that Elon isn’t going to truly care about earning improvements at this enterprise. And the SEC submitting appears to recommend that that’s what this is all about. So if you are a shareholder, the response listed here is really binary, right? You both want Elon Musk because you assume that he’d be great for the gains of this organization, or you will not mainly because at $54.20, which is a enormous upside from when Elon initial began acquiring shares in January. That’s about a 50% high quality. So you like that rate, you know?

AKIKO FUJITA: Well, it is really a significant upside from when we started out acquiring it. But when you appear at wherever Twitter shares are buying and selling very last 12 months, right before we noticed the big tech provide-off, we are speaking about higher than $70. So is there genuinely a sizeable upside to Elon Musk’s adjust in the company? And I believe at the conclusion of the working day, you might be appropriate, Brian, as a shareholder, you want to see where the stock moves. But it does, outside of Elon Musk’s tweets, go on the fundamentals. And what does he fundamentally want to alter about this business that is likely to make improvements to its outlook?

BRIAN CHEUNG: Yeah, and, well, at the conclude of the day, which is what this is about, appropriate? Elon wishes to make modifications. And in fact, we requested this question to our Twitter followers, of course, on Twitter, on our Yahoo Finance account. We questioned the concern, would you go away Twitter if Elon Musk buys the social media firm? Obviously, there is certainly been this kind of general narrative as properly about billionaires managing a lot of the social media that we operate.

And we have been seeing a large amount of engage in on this poll. A large amount of men and women have opinions, but 84% indicating no, 14% expressing yes. I signify, in my situation, I imagine I might almost certainly continue to be on the system just mainly because of how essential is as a news dissemination services. But it appears like a whole lot of men and women would not be all that upset if Elon Musk have been to choose about this firm. Unquestionably something value observing.