Musk Releases Goldman Sachs Practices

Musk Releases Goldman Sachs Practices ...

Some will view the move as a form of intimidation.

Elon Musk, the world's richest man, appears to remind his opponents that to fight him they must be prepared for anything. No holds are barred, including humiliation on social media, and particularly on Twitter, the most popular communication channel of the Tesla () - chief executive.

The most recent aim of the serial entrepreneur's wrath is none other than Goldman Sachs () -.

The dispute between Musk and the establishment is about Twitter () -. The tech business was priced at $54.20 per share, which means the company is valued at $43 billion.

Musk made a "best and final" offer and said he won't add a penny more at any time. (His fortune is expected to be $251 billion as of April 14.)

The same day, Twitter's board of directors gathered to examine this suggestion.

Goldman Sachs has appointed a Twitter board against Musk.

Twitter is attempting to prevent the billionaire, who criticizes the way in which the social network uses the principle of free speech, from taking control of the company.

The board may adopt a poison tablet, a tactic aimed at making a hostile takeover prohibitively costly.

In this confrontation with Musk, the board has retained Goldman Sachs to advise it. Morgan Stanley () - a competitor of Goldman Sachs - has been retained as his advisory bank for his part.

"If the current Twitter board takes actions contrary to shareholder interests, they would be breaching their fiduciary duty," the billionaire said of Twitter. "They would therefore assume responsibility as a scale."

He was adamant to hear from the board of directors.

"It would be absolutely irresponsible not to submit this offer to a shareholder vote. They own the company, not the board of directors," Musk said.

TheStreet Recommands

$30 vs. $54.20

He then directed his anger to Goldman Sachs as a way of saying it's the bank that seems to be whispering to board members to explore alternatives or explore alternative methods to say no to Musk.

Musk often hits where it hurts most. In this case, Musk has raised the possibility of interest conflicts. He received a research note from Goldman Sachs analysts, which he accompanied with a smuggled caption.

Following its fourth-quarter earnings report, this research note sent to the bank's clients on February 10 is a review of Twitter.

Goldman Sachs analysts seem unconvinced about the company's performance and promises, and they clarify this by imposing their price target at $30 per share.

The stock was moving around $37.83 as it closed at that price on February 9th. According to Goldman Sachs analysts, the fair price of Twitter stock was 11% less than the price at which it traded.

Musk appears to be asking: How can the firm conclude that an offer of $54.20 is not a suitable offer if it were two months ago?

Twitter's stock was slashed on April 14 for $45.08, but has risen dramatically since the billionaire announced on April 4 that he had acquired 9.1% of Twitter.

TheStreet had no response to Goldman Sachs' request for a comment.

The majority of Twitter users took his side, as it's often done with Musk.

Elon will sell his 9.2% price, but the price will increase, and the board of twitter will be in trouble with the SEC for failing to seek out their investors' best interests.

"Price targets $30. Let's see if they make a revised estimate after twitter pays them to convince the board not to sell for $54.20," says Billy Markus, the co-founder of meme cryptocurrency Dogecoin, Musk's favorite cryptocurrency.

Musk ignored a major issue about financial services. Walls at an investment bank are separated from analysts who are doing their job to investigate the activities of businesses and their sectors. Analysts do their work independently of the advisory division.

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