NOTE: I deleted the earlier version of this video and updated it with the new details announced a few hours by the board of Twitter after I published it (about the specific Poison Pill plan filed). If you liked the earlier version - I'd appreciate it if you hit the like button on this one too! 😊
@johnsmith-ir1ne
2 жыл бұрын
Done! I'm a fan of your content, esp for Canadians 🐱 Even tho Elon is the definition of a unstable wildcard, I really hope he succeeds taking over Twitter. Not because I think Elon is really a reliable free speech advocate (he's not, given his history), but because Twitter is proven to be the enemy of free speech and intellectual diversity and academic freedom (given its history). I would say the same to KZitem/Google, Facebook, Reddit...
@PreetBanerjee
2 жыл бұрын
@@johnsmith-ir1ne Thank you, John!
@matthieuv.4605
2 жыл бұрын
Ok ok, I thought I was getting crazy for a few moments...
@LuciferFCS
2 жыл бұрын
thanks for this description, and breaking it down for a dummy such as myself
@robertjenkins7133
2 жыл бұрын
Guess Twitter read my comment lol.
@CharmelionZard
2 жыл бұрын
Can’t believe I saw an honest KZitem video with as little bias as possible on the subject being covered. You earned yourself a subscriber.
@PreetBanerjee
2 жыл бұрын
Thank you! That means a lot
@theeternal6890
2 жыл бұрын
One more
@jessie960
2 жыл бұрын
@@PreetBanerjee same here! I love your pacing for the information. It doesn't cram information
@michel-adrienacadie8898
2 жыл бұрын
Yes another one with Elon buying Twitter
@jenkins80526
2 жыл бұрын
His Twitter purchase is one of Elon's awesome gifts to the world!!!
@AndieZ4U2
2 жыл бұрын
I truly am thankful for this explanation.
@georgesmith9178
2 жыл бұрын
In this case, it is not just about money. As Preet aptly said, the shareholders own the company. And as that is the case, they can vote on this boards tactics to deter a legitimate bid on obtaining control of the company. Of course, Elon Musk will have to continue to explain why he wants to acquire Twitter because in this case it is political - the board wants to be able to continue to curtail free speech as they please via unannounced algorithms. Put plainly, Twitter is extremely important for democracy and the current board is not exactly democracy-friendly.
@JD-pe7sx
2 жыл бұрын
As a tiny retail shareholder I resent so many people saying this isn't about the money, lol. It absolutely is. The bid is too low. Twitter was a $70 stock once and can be again. I'd rather wait and I'm sure lots of shareholders would too.
@MrRight-wm5rv
2 жыл бұрын
You earned a sub
@burtonrodman
2 жыл бұрын
SOOO refreshing to see a video that just presents the facts in an unbiased and understandable way. Thanks!
@doompod
2 жыл бұрын
As someone who just got permanently suspended from Twitter for making a joke about slapping someone, I hope Elon buys Twitter and cleans house.
@floridaray3380
2 жыл бұрын
Ssoooo funny that he did buy it (26 April)
@Nightout88
2 жыл бұрын
well he bought it lets hope he cleans it up now
@BobRooney290
2 жыл бұрын
Elon got ripped off. twitter aint worth a dime.
@xehP
2 жыл бұрын
same here, in-fact it was a quote, I sent an appeal and gave them a timestamped video for context and they rejected it lmaooo I'm not even fussed about it personally, but I thought I'd appeal it for principles sake.
@McD-j5r
10 ай бұрын
Exactly what he did.
@michelemisiewicz2301
2 жыл бұрын
A friendly takeover is usually when the target Board are going to benefit personally - a hostile takeover is usually when the target Board are not going to benefit personally. It's supposed to be about what benefits the shareholders but .. hmm. I love how this shareholder plan essentially changes the game while it's in process - and the SEC has no problem in allowing it!!! Now I understand why Musk and the SEC do not get along :)
@sachin265
2 жыл бұрын
Elon called the SEC as "b**tards" in his latest TED interview
@michelemisiewicz2301
2 жыл бұрын
@@sachin265 He obviously has his reasons :) My position is how can the SEC as unbiased regulator credibly approve the poison pill? It allows ANYONE to buy shares and trigger the 50% discounted buying of shares by all other shareholders EXCEPT Musk. It is protectionist policy - and weighted against Musk - but yet he is also a shareholder - so how is this acting in the best interest of ALL shareholders? It is clearly dishonest and unacceptable ie in breach of their Directors duties. Furthermore, the Board has a conflict of interest - they will retain their paid positions if Musk does not obtain ownership - but will not if he does. Obviously the SEC should not honour the Boards actions - and if it does then I guess Musk is right about them as well!! :)
@Eternitypraise
2 жыл бұрын
This was an amazing explanation, mate, you are really good at this!!!
@PreetBanerjee
2 жыл бұрын
Thank you very much!
@1mikewalsh
2 жыл бұрын
If I had any stock in Twitter right now I would dump them before Twitter devalues them to $4.00! Elon has offered MORE than a fair price.
@aden7824
2 жыл бұрын
Great video Preet! Am I correct to say: Poison pill = More shares to shareholders, purposefully diluting share value to make buying the company outright, less attractive?
@PreetBanerjee
2 жыл бұрын
Very close: a poison pill defense puts into place the possibility of creating more shares, and that existing shareholders (and NOT the acquirer) would be able to acquire those shares on favourable terms. This would exclude the acquirer from being able to keep their proportional share of control. The poison pill rarely gets triggered (I think I saw somewhere that one has NEVER been triggered). Either a deal is made (either with the board, or with shareholders) which could be a sweeter deal, or a proxy battle to replace the board with a more friendly (to the deal) board.
@luk1_285
2 жыл бұрын
@@PreetBanerjee wouldn't shunning the acquirer to the same benefits of the poison pill be discriminatory as a shareholder of the company. Is not the acquirer entitled to the poison pill benefits as a shareholder?
@mariemazzibren5040
2 жыл бұрын
*'Thank you, Preet!! We're watching and learning!!'*
@s0lidniy
2 жыл бұрын
What's the shareholder motivation for buying those extra shares at $210 when a share trades $50? Wouldn't you be paying ~400% price?
@PreetBanerjee
2 жыл бұрын
I think that price might be adjusted if they ever get close to needing to trigger the pill. The rights agreement has all sorts of clauses indicating they can change the price anytime for pretty much any reason. Right now, I think it's just symbolic based on the 420 meme which is stupid.
@blanti
2 жыл бұрын
I first heard you on an AGF Virtual Roadshow. Love your expertise at simply explaining the complicated. Keep up the great content! Also, thanks for the lack of a "Stroke" thumbnail, lol!
@sa34w
2 жыл бұрын
He can buy 14.20 using 2 proxies, then buy another raise his 15 percent and by that give an option for proxies to double their shares and get a hostile takeover done easily
@wraith9448
2 жыл бұрын
Well he bought Twitter
@Monty-456
2 жыл бұрын
Do you believe AMC squeeze? Do you know about SEC and government authorities corruption on stock market? Time for you to research and make videos. We have more than 4 million AMC investors. You could reach more than 50,000 subscribers guaranteed. Your voice and knowledge would help our community.
@joshlock4627
2 жыл бұрын
It’s called free speech . It’s a public company . Don’t like it , work hard and buy shares
@cherylhurst
2 жыл бұрын
The other comments say it all but preet you are honestly so inspiring in how you explain complex topics and also the quality of the editing and videos. It would probably be so easy for you to make someone like me feel stupid but you don’t, just clear information 😊😍
@slevinchannel7589
2 жыл бұрын
People really love to HERO-FY the Rich, even though objectively proven and factually in fact: the rich hurt the poor and the current systems makes them hurt us. This aint a Theory: We have the Data. The Data? We have It! C'mon, check channel like 'Second Thought' and 'Some More News' and give them a genuiny chance to explain to you that both 'There is No Problem' AND 'The Problems are so heavy its hopeless!!' is BOTH untrue and wrong and false. We totally have Hope. Give those KZitemrs a FAIR Chance, please.
@leonguyen1288
2 жыл бұрын
At this rate elon is gunna make his own twitter like how he saw rockets being to expensive and made his own
@rjacosta1070
2 жыл бұрын
I hope Elon moves Twitter out of the State of California, move it to Texas. Fire everyone hire new employees
@user-km4ys1js1t
2 жыл бұрын
I wasn't planning on liking the video, but I sure do hate those thumbnails, so u get a like
@jamespitcher6936
2 жыл бұрын
I think censoring the Babylon Bee's post was the final straw and triggered Elon. It came days after BB censorship.
@littleninjai222
2 жыл бұрын
Hi, Preet I'm so interested to hear your thoughts on the Twitter deal. If you do another video, can you please talk about what happens to shares when a company goes from publicly traded back to private?
@victoria001av
2 жыл бұрын
A stroke! Ha! Why they do that? I'm subscribing.
@BM-su7kc
2 жыл бұрын
I subed for the sole reason that the thumbnail doesn't look like you're having a stroke attack.
@PreetBanerjee
2 жыл бұрын
Haha - thanks!
@shawnhennigan7170
2 жыл бұрын
Elon Musk please oh God buy AMC stock to help this squeeze
@tateknows1688
2 жыл бұрын
lets all buy shares and give our voting rights to elon musk
@88SRINIVASAN
2 жыл бұрын
One of the best and easy way of explaining the subject, I have seen very few explained such complicated in easy understanding way. And you are one of them. Very satisfied to seen your video, hope I will follow all your future content and expecting to learn more.thanks and keep post more useful informative videos. 👏🏽👏🏽👏🏽👍
@suggesttwo
2 жыл бұрын
The board of directors have not done thier feduciary responsibility to the shareholders. It should be considered.
@DERIC4REAL328
2 жыл бұрын
Musk is a fitting name cause something stinks with elon!
@teslacarolina
2 жыл бұрын
Very informative and no BS. Excellent video!
@PreetBanerjee
2 жыл бұрын
Much appreciated!
@rachaelwatson4989
2 жыл бұрын
Interesting thanks
@sonicbigboom
2 жыл бұрын
Thank you for clearly explaining how this poison pill may work. My only question is, where do "preferred shares" come from? I have always thought stocks were the company's ownership split into many different parts. So how do these "preferred shares" that have the potential voting power of ~40% of the company form?
@PreetBanerjee
2 жыл бұрын
A company can create stock at the board’s discretion, really. Normally a preferred share is like a pseudo bond, paying a nice dividend and not having voting rights, but the board has set it up that these new shares would have voting rights as part of the design of the poison pill plan.
@PreetBanerjee
2 жыл бұрын
Shareholders (and the markets) might end up not being happy about the board’s decisions though.
@sonicbigboom
2 жыл бұрын
@@PreetBanerjee To clarify, does that mean that with enough of the company’s support, (board/51% of stocks), stocks can be made out of thin air?
@StofStuiver
2 жыл бұрын
@@sonicbigboom As far as i know a company can issue new shares to get more liquidity. So the money that comes into the company from the sale of new shares, goes into the company, which raises the value of the company and thus the shares. So if done normally, to get liquidity the share price would not go down. Ofc if it is to save a company bc it cant pay its bills, thats less good. And in this case, im kinda baffled, bc it seems to me, if the acuirer cant buy, his shares become worth less, so its seems theft to me. But im no expert, so maybe im wrong
@gilgamesh310
2 жыл бұрын
Is it good for retail investors to invest now, so that our shares increase in value when Elon buys?
@PreetBanerjee
2 жыл бұрын
If the current share price is below the takeover offer price that tends to signal that the markets are skeptical the deal will complete. That may change, but you would be speculating that the deal would happen. The bigger the discount to the offer price, the higher the return would be, but the risk is higher too. If the deal falls through, the share price could drop. So: nothing is certain.
@ahsanmohammed1
2 жыл бұрын
Good topic. Good video. Thanks.
@Enemji
2 жыл бұрын
Did the Twitter shareholders exercise their rights to buy additional shares?
@YOQishere
2 жыл бұрын
Damn I been subbed to you for years, I admit it's been a while since I checked out a video but holy what a difference. Great clean video. Great edit. shout out to you/team editor whoever. very inspiring. And informative.
@PreetBanerjee
2 жыл бұрын
Thanks for sticking around! And thanks for the great comment: I'm embarrassed to look back at some of my older videos lol
@cherylhurst
2 жыл бұрын
Pretty sure he does it all himself, no team. It’s incredible isn’t it!!
@shawnhennigan7170
2 жыл бұрын
Please Elon Musk buy AMC stock
@ramblinlamb6459
2 жыл бұрын
Thanks for the clear definition of a "poison pill" Preet. Sounds like the expression "abortion pill" might be even more appropriate ;)
@theeternal6890
2 жыл бұрын
Why would that be?
@ramblinlamb6459
2 жыл бұрын
@@theeternal6890 They're more readily available ;)
@theeternal6890
2 жыл бұрын
@@ramblinlamb6459 hehe.. ok🥲🥲
@Virtualvinyilradio
2 жыл бұрын
I watched the whole thing 👀
@r0yal_
2 жыл бұрын
how is it allowed for them to specifically lock someone out of buying shares if they already own 15%, that doesn't seem fair to me
@celestemichon1038
2 жыл бұрын
Thank you that was really interesting and informative yay Elon
@rohitvarkhedkar5038
2 жыл бұрын
Awesome explanation!!
@andrewwoulfe6579
2 жыл бұрын
The shows I really don’t understand finances to be able to selectively say who can buy shares seems weird Also sounds a lot like our government when we’re in trouble will just print more money or when we’re in trouble will just make more shares
@hamboverse
2 жыл бұрын
Well this is very informative
@SimbolicProductions
2 жыл бұрын
is this guy Chamath?
@maccsamillion3158
2 жыл бұрын
Great video!! It’s nice to see unbiased facts and info. Keep up the good work!!
@PreetBanerjee
2 жыл бұрын
Thank you, Maccs!
@harrypotter9213
2 жыл бұрын
So the 1/1000 preferred shares, which cost $210, are basically equal to the common shares, which Elon buys and costs $50? So they're like a costly way of maintaining ownership percentage?
@PreetBanerjee
2 жыл бұрын
The pricing they chose was a little outside the normal range for poison pills (which roughly is 3x-5x the current price from what I can see), but it almost seems as though the price is irrelevant as the existence of the plan (which allows for a changing of the exercise price) is the deterrent that allows for the board to buy more time to weight their options. It generally either brings the acquirer to the table, or could force them to walk away or go around the board and try for a proxy vote to remove the board and replace it with directors who would approve the original deal.
@harrypotter9213
2 жыл бұрын
@@PreetBanerjee Assuming they then took the poison pill, would the company's overall price increase for the acquirer? Assuming they wanted to buy 100% of the company would they need to purchase the preferred shares as well and would those shares cost $210? or would taking the poison pill basically make the company "unbuyable" because the preferred shares are off-limits for the acquirer?
@PreetBanerjee
2 жыл бұрын
@@harrypotter9213 I believe a poison pill has never been triggered before, so it’s untested. I imagine the shareholders can sell their preferreds to anyone they want (I believe the acquirer is only prevented from getting the rights which are exercisable at half the pref share price), so this would make the acquisition much more expensive as they would have to make up for their diluted position and then continue to buy more shares as well.
@dennishilmas3423
2 жыл бұрын
Ok, so, from 97-01, how many companies used it? If 21 companies used it; cool....., if 5,000 companies used it; not cool. What are the numbers from that timeframe?
@PreetBanerjee
2 жыл бұрын
Don't have the aggregate numbers, but from that article in CFO magazine they said 140 companies used it in the first half of 2001. Keep in mind, this was as the tech bubble was bursting and lots of companies became targets for takeovers, so that's likely an inflated number compared to the prior years.
@HurtsEnd
2 жыл бұрын
He bought it
@PeterPapolis
2 жыл бұрын
Preet, can you walk me through in detail why the 1/1000 of a preferred share is worth $420 in the end? I really don't understand that point. I am financially literate, and I was with you up to that point. I understand how a shareholder has the right to pay $210 for the 1/1000 of a preferred share, but then you lost me after that.
@PreetBanerjee
2 жыл бұрын
Yes, it's a bit puzzling but the devil is in the details. If you look through the 50+ pages in the shareholder rights plan, there are tonnes of clauses that say they can change the exercise price pretty much arbitrarily whenever they want. So my guess is that they chose $210/$420 as a symbolic number and would adjust the price if necessary if anyone crosses the 15% threshold. They might choose a number that makes more financial sense, but given that apparently no poison pill has ever been triggered in history, the numbers don't matter - just the existence of the plan.
@georgedoolittle9015
2 жыл бұрын
"come up with $210 for promises or tender Elon at his current offer now and get paid now." In theory Elon has the cash and possibly leverage of the Board to convince Jack Dorsey by way of example to support the bid.
@SYLXM
2 жыл бұрын
Fantastic explanation!
@PreetBanerjee
2 жыл бұрын
Thank you!
@brandon1910
2 жыл бұрын
Nice balanced video. Thanks!
@SquadDirector
2 жыл бұрын
It's dead now. However, the funeral will be a long and extended ceremony. EDIT: The funeral was canceled after my man got cooked in the court room. He's now back to buying TWTR at the original price of $54.20/share.
@thunster816
2 жыл бұрын
If Twitter did their job people wouldn't of wanted Elon to buy Twitter. Elon wouldn't be talking shit about Twitter etc. Why add in new features when you know you should be fixing what people want you to fix etc.
@michael69419
2 жыл бұрын
Elon is 5 moves ahead of these Twitter twatz at alllllll times do not underestimate the Elongated Muskrat!!!!
@woodtv4481
Жыл бұрын
NEWEST SUBSCRIBER! IDOL!
@roya8683
2 жыл бұрын
Amazing explanation
@memnocktdevil
2 жыл бұрын
Actually (this is of no consequence now but) reconsider his shareholder statement was a threat. The share price blew up because people found out he was buying. He was saying if i sold now the stock would tank and you all would take the blame
@davidchen1458
8 ай бұрын
Why ppl spend 210 to buy a equivalent common share where it trades at 50?
@delishdida
2 жыл бұрын
What happens if someone other than Elon hits that 15%. Then will the poison Pill be activated and will it restrict Elon or the new guy who hit 15%.
@hisskias330
2 жыл бұрын
Don't u think , you deserve million subscribers? Seriously shocked to see 1L subscribers for such a good content.
@PreetBanerjee
2 жыл бұрын
Hopefully if I keep grinding I’ll earn that! I appreciate your support!
@J-Kimble
2 жыл бұрын
But if they were to poison pill, Elon can just sell his shares stat and rebuy the discounted ones couldn't he?
@Podcastforthewin
2 жыл бұрын
Lol sure… i bet he buy twitter, and CNN + will close down in less than a month Oh wait, what’s this?
@redpilledfag
2 жыл бұрын
I can't wait for Elon to take over Twitter.
@AnimationsN1
2 жыл бұрын
Elon Musk should pair up with Elong Ma to take over Twitter imo
@satepestage3599
2 жыл бұрын
Can't he just use holding companies (that he owns) to buy the diluted favourable shares after the initiation of poison pill.. so in the end he has several companies that own up to 15% of the shares.. he only needs 3 companies to make himself controlling shareholder of twitter above 50% ownership.
@PreetBanerjee
2 жыл бұрын
Good question: he's required to disclose his beneficial ownership, whether he directly owns shares personally, or through subsidiaries. Once the collective holdings trip the 15% threshold, the pill could be triggered.
@satepestage3599
2 жыл бұрын
@@PreetBanerjee ah yeah I figured. But he's required to disclose that by what law/regulation?
@PreetBanerjee
2 жыл бұрын
@@satepestage3599 The Securities Exchange Act of 1934
@michaelmorrison4201
2 жыл бұрын
But it's only triggered at 15% or can it be done before then?
@jonnaughton
2 жыл бұрын
Of course, for a cool $20 million he could loan me the money to buy some shares and I promise (in writing) to vote in his favour every time. Let’s say 80 million as a nice conservative number. And later, maybe in a year or so, I’ll sell them all and repay his loan in full. Yes, I may have acquired 10% of the company at no cost to me, but I still owe him around $3.5 billion so it’s not like I can ever rob him. 😎
@DirtyDeedsLLC
2 жыл бұрын
That last comment about stroke pics got me to like and subscribe 🤣
@phildimuro150
2 жыл бұрын
I've never wanted to like/subscribe more 👉"If u believe in a future where finance youtubers don't look like they are having a stroke in every thumbnail. Hit that like button"
@PreetBanerjee
2 жыл бұрын
I was going to say “…don’t look like they are getting a prostate exam” but maybe I’ll save that for a future video 😂
@_MrLee
2 жыл бұрын
I hope Elon isn't setup to be physically poisoned IRL.
@OptimumInfinitum
2 жыл бұрын
Elon musks invasion of twitter
@smiggley9257
6 ай бұрын
And he bought the company a few months later
@jdavid1707
2 жыл бұрын
fabulous explanation. very entertaining too. congrats on breaking 111k subscribers. how cool is that?
@PreetBanerjee
2 жыл бұрын
I'll break out the champagne at 420K subscribers? lol
@biggoofer
2 жыл бұрын
Best explanation on poison pill with Twitter example
@floridaray3380
2 жыл бұрын
This video did not age well....
@PreetBanerjee
2 жыл бұрын
Congratulations: you failed to even read the title of the video.
@floridaray3380
2 жыл бұрын
@@PreetBanerjee Ya, I disappoint my mother a lot also...
@xoxjelloxox
2 жыл бұрын
How do you view shares bought by people?
@lnk3503
2 жыл бұрын
It looks like twitter is about to get replaced.
@zoyten8279
Жыл бұрын
One thing that confuses me is that with a poison pill the company issues discounted so the outstanding shares are increasing but they arent fully funded thus the price of the every individual share should decrease right? Especially since the company could issue free shares, say 1 share for each share you own, then the price of 1 share would be halved which would basically make Elon lose 50% of his money? Why doesnt this devalue the stock i cant find anything online like nobodys wondered this i must be missing something please if someone could explain i would really appreciate it!!
@PreetBanerjee
Жыл бұрын
I found a few things that might help address this question: Poison pill strategies usually involve granting existing shareholders the right to purchase more shares at a discount in the future if a hostile takeover bid occurs. Therefore, although the theoretical value of each share may be diluted, the real impact may be offset by the perception of future value. The shareholders may perceive these rights as valuable because they provide a chance to buy shares at a discount if a takeover happens. One thing to remember is that a poison pill strategy doesn't create immediate dilution. It's a contingent dilution, triggered by specific events (i.e., a hostile takeover). If those events don't occur, the dilution won't occur either. Also, some have argued that it's also important to differentiate between economic dilution and financial dilution. Economic dilution refers to the decrease in earnings per share (EPS) and other per-share metrics that happens when new shares are issued. Financial dilution, on the other hand, refers to the decrease in a shareholder's proportionate ownership and voting power in the company. The poison pill strategy involves financial dilution for the acquirer (since their proportionate ownership decreases), but not necessarily economic dilution for the existing shareholders. The way the market perceives the issuance of new shares can greatly influence the impact on the stock's price. If investors see the move as a proactive defense against a hostile takeover that might otherwise negatively affect the company, the dilution may not lead to a significant decrease in the stock price. On the contrary, the stock price might even rise if investors perceive that the poison pill will ultimately protect shareholder value. Conversely, if the issuance is seen as a desperate move or a sign of poor management, it could lead to a decrease in stock price. But finally, it's relatively untested so I don't know if we know for sure what would have happened, but the strength of the defense is in making it unpalatable enough that it gives the target company a bit more leverage in trying to get a better deal. But if the shareholders are against management's use of the poison pill, eventually they could vote out directors and replace them with new directors who could revoke the poison pill, etc. I think a lot of it is, as I said, untested. So I have many of the same questions you do!
@its.yogeshpatel
2 жыл бұрын
Very well explained. But got confused - How company is offering more shares when it has already offered it's all shares? I mean once a company is made public with its 100% equity given to share holders, where are these new shares coming from?
@kurokeme87
Жыл бұрын
From thin air
@planeteuropa
2 жыл бұрын
Mid term elections ..! Hope Elon can take over soon and throw out the corrupt board.
@dr.z3426
2 жыл бұрын
All these youtubers just copy each other lol. It's getting down to throwing digs about thumbnails. Try bringing something of value to the table not just regurgitating what the last 5 guys said.
@PreetBanerjee
2 жыл бұрын
Don't forget to like and subscribe
@999plumbob
2 жыл бұрын
Isn't that process just socialism
@takeoffeh9576
2 жыл бұрын
Just wondering, if elon has multiple like minded investors already invested in twitter and he triggers the "poison pill". Couldnt they just purchase the new stocks and sell back to elon for a small return on investment?
@PreetBanerjee
2 жыл бұрын
It might be easier to just go around the board and have a proxy battle, get the board replaced with one that will approve the deal. The other investors would still get their premium. I don't know if he'll get that much support from institutional investors, but triggering the pill would be problematic for Musk, and historically I don't believe anyone has ever tried that.
@truth3137
2 жыл бұрын
What a great video! Liked, subscribed and belled!
@PreetBanerjee
2 жыл бұрын
Awesome thank you!
@billsmith6652
2 жыл бұрын
Is this actually legal or just never been challenged in court? One would think the equal protection clause of the constitution would prevent treating one shareholder different than all the others and would be deemed illegal. Particularly, when the board collectively owns less than 2% of outstanding shares.
@PreetBanerjee
2 жыл бұрын
Poison pills CAN be ok from a court’s perspective as many have been tested in courts. However, I believe there was a recent case that was deemed against a corporation’s best interests (I believe that board had tried a 5% trigger and the court thought it was too extreme).
@farmsquatter625
2 жыл бұрын
Wouldn't excluding acquirer from this startegy not right or discriminatory?
@PreetBanerjee
2 жыл бұрын
The board could be expected to take any measures to enhance shareholder value, like if they thought an offer was not high enough or that they thought new management would not manage the company in shareholders’ best interests. (Musk did say publicly that he didn’t care about the economics of the deal so he may have given the board more of a leg to stand on if the pill plan is challenged in courts).
@seebarnes6588
2 жыл бұрын
You're way off.The Saudis are involved, There's a bigger story than money.
@PreetBanerjee
2 жыл бұрын
Ok
@ogslowdragon
2 жыл бұрын
Fiduciary irresponsibility or internal sabotage of the stock are the only two acceptable critiques.
@sachin265
2 жыл бұрын
What a great and informative video. Loved it.
@PreetBanerjee
2 жыл бұрын
Glad you enjoyed it!
@sarathma1729
2 жыл бұрын
Okey now he bought it🤣🤣
@claudedufresne3107
2 жыл бұрын
Preet. Can you do the math so I could understand why 70,000,000 new shares could be issued?
@PreetBanerjee
2 жыл бұрын
It was an example using hypothetical numbers. In reality, 1 new 1/1000th of a preferred share (which would have the same voting power as 1 common share) could be created for every common share (except the acquirer). So if there are 800 million common shares, subtract the acquirer's stake (call it 80 million shares), you'd have 720 million common shares that have rights that could allow for the creation of 720 million new votes (by way of 720 million 1/1000ths of a new class a preferred share)
@Mikster_Mindo
2 жыл бұрын
Why doesn’t Musk something good for the world with all this money… so disappointing
@Andynonymous_music
2 жыл бұрын
Lol he decides to shut the whole thing down then that will be money well spent in my mind. Not getting my hopes up though, the man has a severe case of Mad Tweet Disease.
@nipunaggarwal8730
2 жыл бұрын
Real life suits episode
@kantizx1
2 жыл бұрын
Fellow bangla chele!!
@nakulkashyap5205
2 жыл бұрын
How did they arrive @ 210 per 1/1000 class A share? Is there a relation to the present share price
@PreetBanerjee
2 жыл бұрын
There isn’t. They chose an exercise price of $210 because the exercise price is designed as 50% of what the market price they select - which would make it $420 which was chosen because of the 420 meme. They will most likely change the exercise price if they ever get close to needing to trigger the pill as $420 doesn’t really make sense and the rights plan lets them change those terms at will.
@alveolate
2 жыл бұрын
so the price they set is purely meme? are they trying to signal to shareholders that they can also meme just as good as musk so don't sell to musk, trust them instead?
@zholud
2 жыл бұрын
So if 1/1000 of a preferred share is bought at $210 and is valued at $420, where does $210 come from? If I am a shareholder it is not in my best interest for the board of directors to do this because my share value should drop (right?). Say I own 1 twitter share - how do I defend my interests if I am against the poison pill?
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