On Monday, Elon Musk struck an agreement to purchase Twitter Inc for $44 billion cash, a move that would give the world’s richest person control of a social media network that is used by millions of people across the globe.
For the 16-year-old corporation, this is a watershed moment, as it has grown into one of the world’s most significant public squares and now confronts a slew of difficulties.
After Musk wooed Twitter shareholders with specifics of his offer’s funding, discussions on the deal, which seemed doubtful last week, surged over the weekend.
Twitter started talking with Musk to purchase the firm at the suggested $54.20 per share price under pressure.
Elon Musk stated in a statement that “free expression is the backbone of a functional democracy, and Twitter is the digital town square where subjects critical to the survival of humankind are debated.”
Following the announcement, shares rose by nearly 6%. On the day before he revealed he had purchased a 9% investment in the company, the closing price was about 40% higher than it is now. Despite that, the offer is much below Twitter’s past year’s trading range of around $70.
The board of directors has allowed the transaction, which now needs shareholder approval.
Musk has taken $25.5 billion in debt and margin loan funding, according to a prepared statement from the firm, and is also pledging $21 billion in equity.
Neither the amount of the separation fee nor the identity of those in charge of the new firm was immediately apparent.
On Twitter, Elon Musk, the CEO of rocket company SpaceX, has stated his desire to tackle trolls by cutting its price and prohibiting advertising from the Twitter Blue premium membership service.
The billionaire, an outspoken admirer of cryptocurrencies, has also requested that dogecoin be included as a payment option on his Twitter account.
Since Jack Dorsey’s successor Parag Agrawal took over as CEO at the end of November, Twitter’s shares had plummeted by around 10% until Musk revealed his ownership position in the firm back in April.
Astonishing influence
Politicians, political dissidents, and activists all use Twitter, despite its tiny size, to impressive effect.
Despite its small size, it has been credited for helping to spark the Arab Spring revolt and accused of playing a part on January 6, 2021, assault of the U.S. Capitol in Washington.
Resulting from Twitter’s decision to ban former President Donald Trump for allegedly instigating violence after last year’s attack on the Capitol by Trump supporters, Musk tweeted: “many people are going to be furious with West Coast high tech as the de facto arbiter of free expression.”
Republicans hailed trump’s return to Twitter on Monday as news of Musk’s prospective takeover of the social media platform boosted their confidence.
Works at The Truth International Magazine. My area of interest includes international relations, peace & conflict studies, qualitative & quantitative research in social sciences, and world politics. Reach@ aimen.bukhari@tti.org.pk
