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)
As others have said, you are likely running off an old metric that’s no longer true. Twitter / X is considered a privately traded company meaning that the shares that are owned aren’t publicly given anymore, he owns at least the majority of the private shares, however he stated he owns 100% of it.
While he has control of the company because he’s the owner, he hasn’t fully paid for the company if that makes sense. Most of his purchase for the company was done by using his other stocks as collateral to be able to take out loans from the banks.
This is why the article the other day came up of major banks are trying to sell his loans for cheaper than what they’re actually worth, because they’re no longer confident that Elon as a whole is going to be able to foot the bill like he said he was able to. (Honestly unless trump bails it out it’s a valid concern)
Since he owns the company, he can make any decision he wants regarding the company, there is no publicly known shareholders have any decision. Now this isn’t to say that there isn’t privately owned shareholders, but since it’s a privately owned company they’re not obligated to disclose those percentages.
gonna get really interesting when the banks start looking for their returns. watch, he’ll get Trump to bail it out.
That’s not how loans for billionaires work. The bank is very happy to only collect some interest on this huge loan for ever, and would be more than happy to give Elon more loans to buy other things. Because of the fractional reserve banking system the bank isn’t even running any real risk by doing this.
bet you a soda they want their money in the next few years.
You’re on 🤝
FYI he stopped using his stock as collateral for the purchase part way though. He sold more shares, and got more outside investment. Twitter itself has a loan as well, but it’s not backed by Elons stock.
Edit: I think it’s worth adding… while the loan isn’t backed by Elons stock, if Twitter was failing and the bank came a knocking, he’d probably use his stock to save it.
I didn’t realize he paid his stock parts off already, thats good to know!
I don’t know if he actually ever did it, or had just said he was going to? As in I’m not sure if there was anything to pay off. But there very well may have been an actual real collateralized debt there for a short period of time.