Wall Street Doesn’t Seem Very Impressed With Musk’s Bid for Twitter

Should investors take Elon Musk’s bid for Twitter seriously? The billionaire Tesla chief just launched a $41 billion cash offer for the social media company, but Wall Street is underwhelmed.

Twitter stock had just a small pop this morning and the share price has wobbled around since. At a little more than $47, it is nowhere near Musk’s bid of $54.20 per share. The news broke after his Thursday SEC filing.

Before this, Musk’s investment interests had been mostly confined to cryptocurrencies and meme stocks. He is a favorite of the Reddit stonks crowd. Musk recently bought a 9.2% stake in Twitter.

Musk claims he can retool Twitter, whose stock has slipped by a third from an all-time high in November. Twitter’s dip comes amid an overall market drop and criticism of the platform for slowing growth and allegedly censoring some users’ views, among other knocks. Note that Musk’s bid is still far below Twitter’s high. Musk said the company he has often criticized must go private to make effective changes.

Want the latest institutional investment industry news and insights? Sign up for CIO newsletters. 

Adding to the drama is Musk’s threat to sell his entire Twitter stake if his offer is not accepted. His SEC filing included a letter to Twitter’s chair, Bret Taylor, saying that he “would need to reconsider my position as a shareholder.” That could hurt the share price.

Musk is the world’s wealthiest person, according to Forbes, with an estimated net worth of $268 billion. That means he can easily afford to pay for Twitter out of his own pocket and remain at the top of the list. No. 2 Jeff Bezos, of Amazon fame, is worth $179 billion.

Connecticut State Treasurer Shawn Wooden unexpectedly announced last week that he will not run for reelection this year, saying that he wants to spend more time with his family. [Source]

“As a father, I’ve sacrificed countless hours, missing everything from basketball games and track meets to family dinners,” Wooden said in a statement, adding that he has two sons approaching college age. “As the proud father of two young Black boys, I know that, today, the best thing I can do is put my own ambitions aside and put them first.”

Wooden said he was proud of his achievements during his stint as treasurer, noting that under his tenure the state has restructured the teachers’ pension fund, divested from civilian gun manufacturers, and secured credit rating upgrades for the first time in over two decades, among other accomplishments.

“For the remainder of my time in office, I intend to continue to focus on the important work of this office,” he said. “While I won’t be on the ballot this fall, my hope is to continue my public service in the future.”

For more stories like this, sign up for the CIO Alert newsletter. 

Wooden was sworn in as Connecticut’s treasurer in January of 2019, after a 21-year career as an investment attorney and a stint as Hartford, Connecticut’s city council president. [Source]

He earned his bachelor’s degree at Trinity College in Hartford and a law degree at New York University School of Law before moving back to Hartford to work for the law firm of Day Pitney, LLP, where he became a partner and led its public pension plan investment practice.

Wooden is the trustee of the $47 billion Connecticut Retirement Plans and Trust Funds, administers a $26 billion debt management program, and manages over $259 billion in annual cash transactions. According to the Connecticut Treasurer’s office, he is the only Black elected state treasurer in the US. He is also president of the National Association of State Treasurers.

“Wooden has been a great partner to my administration in helping get Connecticut’s fiscal house in order, stabilizing our financial future, borrowing in a responsible manner that reduces spending, and making consistent payments to decrease our state’s long-term fiscal obligations,” Connecticut Gov. Ned Lamont said in a statement. “I appreciate his partnership in righting our fiscal ship, and I wish him and his family nothing but the best in their next endeavors.” [Source]

Connecticut Attorney General William Tong, who was elected with Wooden, said the treasurer “has been an effective and responsible steward of the state’s financial and pension assets, and contributed significantly to our state’s strong financial standing.” [Source]