It’s official: Elon Musk has acquired Twitter for a world-record-breaking $44 billion. After just a dispute with the corporate board, Musk now has absolute control over the social networking site.
According to rumors last night, Twitter’s board of directors is expected to approve Musk’s planned transaction, which was verified today. After all of the procedures are completed, the deal will involve the purchase of Twitter for a staggering $44 billion, with each share valued at $54.20.
The world’s richest person, who describes himself as a “free speech absolutist,” wants to privatize the microblogging base to make it much more “democratic.” The Tesla and SpaceX CEO will now have authority over Twitter, one of the most widely utilized communication channels, which is used by politicians, journalists, professionals, and public personalities.
Even as his large following celebrates the deal and Twitter stockholders walk home with $54.20 in cash for each share of Twitter common stock they own upon closure of the planned transaction, there are questions about the temperamental Elon Musk’s takeover of the digital business.
The deal, which was completed today, was announced on April 14 by the celebrity American billionaire, who characterized it as his ‘best and final offer.’ This occurred after Tesla’s CEO purchased more than a 9% interest in the firm and turned down an invitation to join Twitter’s board of directors. “Since making my investment, I now feel the firm can neither grow nor satisfy this societal objective in its current form,” Musk said in a letter to Twitter Chairman Bret Taylor. Twitter should be turned into a private firm.”
The value of Twitter’s stock soared when Musk revealed his purchase of a 9.5% interest in the firm. The stock has risen by roughly 15% in the previous week alone.
The Tesla CEO then became antagonistic against the firm’s board of directors, stating that if the offer to buy the business is not accepted, he “would need to reevaluate” his “standing as a shareholder.”
Musk was able to ‘push’ the board to sell the firm at the offered price after a series of squabbles with the board. Once the procedures are finished and Musk has acquired all of the shares, Twitter will become a private firm.
During Musk’s hostile proposal to the company’s board of directors and after the sale was approved, a lot of things happened.
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Jack Dorsey, the former CEO and co-founder of Twitter reacted.
Jack Dorsey, the ex-CEO and co-founder of Twitter, responded to the purchase with a series of tweets. He praised Musk’s decision and referred to him as the “single solution.” “I don’t believe anybody should own or operate Twitter in principle. It strives to be a public good rather than a company on a protocol level. However, Elon is the only one I trust when it comes to the matter of it becoming a corporation. “I believe in his mission to promote awareness,” Dorsey said in a tweet.
“Twitter as a corporation” has been his “single concern and greatest sorrow,” he added. “Twitter has been bought by Wall Street and the ad model” for the time being, according to Dorsey. According to the co-founder, removing the firm from the market is the “first proper move.” “Twitter as a corporation” has been his “single concern and greatest sorrow,” he added. “Twitter has been bought by Wall Street and the ad model” for the time being, according to Dorsey. According to the co-founder, removing the firm from the market is the “first proper move.”
The fate of Twitter’s CEO, Parag Agarwal
If the new owner (Musk) does not contemplate retaining the present Twitter CEO, Parag Agarwal, he will receive $42 billion. Agarwal, who took over as Twitter’s CEO from Jack Dorsey in November 2021, is alleged to have told employees at a town hall meeting that the company’s future is now ‘uncertain.’
After the deal is finalized, who will be in charge of Twitter?
When the sale closes later this year, the 16-year-old social networking site will become a private company. The greatest concern now is who will lead Twitter when the acquisition is completed. Notably, both CEO Parag Agarwal and chairman Bret Taylor were cited in the company’s news announcement, implying that they are still in their original positions. For the time being, it looks like Agarwal will continue to lead Twitter.
Musk is unlikely to take on another big role very soon, given his current responsibilities as CEO of Tesla and SpaceX. “Free expression is at the heart of a functioning democracy, and Twitter is the digital town square where important issues for humanity’s future are debated,” Musk said following the announcement. “I also want to make Twitter better than ever,” he stated, “by adding new features, opening up the algorithms to enhance trust, eliminating spam bots, and authenticating everyone.”
Users’ reaction
Twitter users were split on the takeover, as they are on any topic. There were concerns about how a Musk-led free speech platform would appear. Several people threatened to leave. Others congratulated Musk on the sale, and memes, Musk’s preferred mode of communication, swamped the forum.
There was also talk of splitting up huge tech companies, with some users asking why so much wealth, power, and influence should be concentrated in just a few hands, whether it be Elon Musk, Mark Zuckerberg, or Jeff Bezos.
Musk’s Potential to Change Twitter
Some analysts believe Musk has the ability to drastically alter the microblogging platform.
Defending the right to free speech!
According to Twitter’s new owner, Elon Musk, content moderators go too far when it comes to content control. According to Musk, this is the “de facto town square” of the internet. “Free expression is the backbone of a healthy democracy, and Twitter is the digital town square where important issues for humanity’s future are debated,” he said after the deal was announced. With all of this in mind, it’s reasonable to assume that Musk will focus on content filtering in order to ensure that the microblogging platform adheres to the values of free expression.
Making Algorithms Open Source
Musk has also stated that he intends to open-source Twitter’s algorithm. Users and others will be able to see how Tweets are displayed in their feed. “Having tweets strangely boosted and downgraded without any visibility into what’s going on,” he stated earlier this month at the TED conference.
Optimizing the Platform
In addition, he may try to improve how Twitter ranks the top accounts, suggesting that content providers be given more credit than those who seldom post yet are placed first. In a Tweet, he also threatened to “fight the spambots or die trying!”
Also Read: How To Secure Twitter Account by Removing 3rd Party Access?
