Elon Musk Buys Twitter: Future Of The Platform Now
- Technology
Loyiso Dlamini- 0
- 9 minutes read
The world’s richest man and Twitter struck a deal of $44 billion on Monday offering SpaceX and Tesla bosses personal control among the most influential social media channels on the planet. After Elon Musk buys Twitter, this company is going to be a publicly traded company owned by Musk, who negotiated a buy price of $54.20 each share. So when you are wondering why did Elon Musk buy Twitter, this article will help you to find that.
The 16 year old Twitter would turn into a private entity on fulfillment of the deal as per the press release by Elon Musk said,
“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated.”
Elon Musk Buys Twitter: The Deal
After Elon Musk buys Twitter, this platform will be obtained by a company completely owned by Elon Musk for $54.20 each share in cash in a transaction that is valued at close $44 billion. The transaction has been concurrently accepted by the board of directors of Twitter. The deal is anticipated to close in 2022, subject to the acceptance of Twitter stockholders, the receipt of applicable regulatory approvals, and the pleasure of other customary closing scenarios.
Twitter Deal Financing
Elon Musk buys Twitter and this takeover has evolved as the third biggest tech acquisition in history. The Tesla boss last week highlighted the $13 billion in bank financing safeguarded by the social-media entity and the $12.5 billion backed by a promise of his Tesla. As per the agreement,
“Musk will be providing an approximately $21 billion equity commitment."
There were no further intimations about where that money would arrive from. All eyes will be on how he is going to manage the finances now. There is one more thing, the ELON MUSK TWITTER crypto. You may wonder what is ELON MUSK TWITTER what does it mean? This is a crypto that was released after this incident and it highly gained value.
After Elon Musk Buys Twitter Who Will Run Twitter
Now the largest question is who will operate the show — the celebrity CEO himself or the present management of Twitter? The acquisition declaration launched by the company quoted both CEO (chief executive officer) Parag Agrawal and also the chairman Bret Taylor, so they are still in their responsibilities, for now. However, Elon Musk has time and again tweeted his discontent with the recent management of Twitter and how the entity has been working. In his proposal when Elon Musk buys Twitter, Musk clearly stated,
“I am not playing the back-and-forth game. I have moved straight to the end…If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market."
So an alteration might be on the cards, analysts think. As Musk is already attached to his role as CEO of both SpaceX and Tesla, he is not likely to not take up another hands-on leadership role. Parag Agrawal, the present CEO of Twitter would get an anticipated $42 million if he were completed within 12 months of a change in control at the social media entity, as per a report.
How will Musk run Twitter?
Musk has stated openly about his decision to make Twitter an ultimate platform for free speech. Outlining his purposes behind the Twitter acquisition, he explained,
“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy. However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company. As a result, I am offering to buy 100 per cent of Twitter.”
He further stated,
“I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans. Twitter has tremendous potential — I look forward to working with the company and the community of users to unlock it."
A Timeline On How Elon Musk Buys Twitter
With that, we cannot end this article, without having a look at the timeline that illustrates how Elon Musk bought the company.
Jan 31 To March 14: Musk Gathers 5 Per Cent Stake On Twitter
Elon Musk reportedly began purchasing shares in Twitter in January 2022. By March 14, Elon had gathered more than a 5% stake in the company according to news reports.
March 24 Onwards: Musk Slams Twitter In Series Of Tweets
Elon Musk started to criticize Twitter for
“failing to adhere to free speech.”
Musk tweeted on March 24,
“Worried about de facto bias in the Twitter algorithm having a major effect on the public; Twitter algorithm should be open source.”
After one day, in a poll post, Musk asked his followers:
“Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?”
April 4: Elon Musk Buys 9.2% Shares Of Twitter
Twitter affirmed that the billionaire entrepreneur has taken a 9.2% share reportedly worth $2.9 billion. Musk after that posted a poll the same day, asking users if they wished for an edit button. Twitter CEO Parag Agrawal encouraged users to “vote carefully” as “The consequences of this poll will be important.”
April 5: Elon Musk Turns A Board Member
Twitter CEO Parag Agrawal declared that Elon Musk was appointed to the board of Twitter in a series of tweets. Former Twitter CEO Jack Dorsey welcomed Musk to the board of Twitter.
I am excited to share that we are appointing @elonmusk to our board. Via conversations with Elon in the latest weeks, it became evident to us that he would bring great value to our Board.
April 9: Musk Asks, “Is Twitter Dying?”
Elon Musk also tweeted to question if the social media network was “dying” and to call out users like singer Justin Bieber, Katy Perry, and Barack Obama who are highly followed but rarely post.
April 14: Musk Offers To Buy The Whole Company For $43 Billion
The CEO of Tesla and SpaceX said on April 14 that he is ready to pay $54.20 for each Twitter stock to purchase 100 percent of the company in an all-cash offer that values the social network at $43.4 billion.
April 24: The Board Holds Discussions With Musk
Talks between the board of Twitter and Musk happened on Sunday and continued into the next day, as per the report. Musk reportedly offered his financial details to the board, after which the social media giant thought of the offer of Musk seriously.
April 25: Elon Musk-Twitter $44 Billion Deal Sealed
Twitter and Elon Musk finally seal the $44 billion deal in one of the largest buyout offers of recent times. Now time will speak for where this Elon Musk buys Twitter billion deal takes the company in the future.
Conclusion
After several rounds of discussion and talks, finally, Elon Musk buys Twitter, involving one of the biggest deals in recent times. After this Elon Musk Twitter takeover, this company will be a completely private entity and there is no decision on who will run the company. Now the users will have to wait to see what happens next.
