The world’s richest Tesla CEO launches a very hostile takeover maneuver to purchase Twitter. Elon Musk has sent a whopping offer of $43 million by paying $54.20 per share, all in cash. Twitter confirmed the news of receiving the unsolicited proposal from Musk to purchase all outstanding shares for $54.20 each by releasing an official statement. The Board of directors stated that they would meticulously review Elon’s proposal before responding.
Musk, known for his witty charm and sarcasm, wrote “I made an offer” on Twitter, attaching the official filing. The regulatory filing offer to purchase Twitter with US Securities and Exchange Commission states this is the final offer from Musk.
The recent rift between Elon and other shareholders of Twitter Inc. has been going on for a while now. Earlier Musk was planning to launch his social media platform to advocate the need for a free speech platform. Elon puts this offer to take the Twitter platform private and restore the freedom of speech for its users. He supported the addition of an edit button for Twitter users and proposed to unlock the potential of Twitter.
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What Is The New Musk And Twitter Row?
Elon Musk has declared his plans and launched his rampant efforts to purchase Twitter. Furthermore, this is not any hasty decision by Musk. He planned on having a say when he first made his intentions public by revealing his stake on Twitter.
The recent proposal from Elon Musk reads:
“I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter, and a 38% premium over the day before my investment was publicly announced. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.”
His statement of filing declares his feisty war game against purchasing Twitter. Elon Musk even refused the offer to join the Board of Directors earlier, as doing so would restrict him from purchasing more shares of the company.
Elon Musk is a dynamic businessman who likes to get involved with every small and big decision for his business. His success with Tesla shows his futuristic thinking and strategy implementation.
Elon Musk made considerable purchases, buying big chunks of Twitter shares over the last few weeks. His total investment is now surpassing $3 billion, accounting for approximately 9.2% of the total outstanding shares of Twitter.
The idea to purchase Twitter and restore the social media platform is not something Elon blurted out abruptly. Musk has been outspoken about the Twitter policies, including his vivid take on including an edit button.
Musk made a pretty straightforward statement by saying, “Twitter has extraordinary potential, I will unlock it.” The statement clarifies his antagonistic endeavor to get a controlling hold of the Twitter platform.
Why does Elon Musk Want To Purchase Twitter?
Elon Musk has been open about destroying the rules set by Twitter restricting users to use the platform as per their own narratives. His plans to purchase Twitter speak volumes about how influential and powerful is the network Twitter.
The past few years are enough to reflect how Twitter has become a platform for prominent elites. The platform has over 200 million users’ daily traffic, including ordinary people without any massive Twitter following. However, influential and powerful names prominently use Twitter as a robust tool to communicate and change perceptions.
Twitter and the potential of its power play an instrumental role in shaping the domain of politics at large. At times, even ordinary people were able to stir the world with their powerful tweets and massive support over the platform.
Donald Trump, former US president, used Twitter largely to form and shape his own political narrative, only to get banned from Twitter permanently at the end of his tenure. Twitter suspended Trump’s account on the pretext of his support of the Capital Riot of January 6.
Not only Trump but other prominent names such as Alex Jones and Milo Yiannopoulos too were banned. Twitter users’ opinions and the response has changed the social and political game for many influential elites.
Elon Musk feels Twitter’s power is trapped and used in the wrong way by restricting the freedom of speech of the users. However, Musk himself is seen blocking several users when he is asked about something he did not like.
Twitter’s popularity has also made it vulnerable to being used and exploited. Many influential Twitter users have used the platform to push numerous conspiracy theories and misinformation.
Even with a high daily user count, Twitter is not able to tap the financial market as high as Google or Facebook platforms. Musk in his several statements stated his views on Twitter tapping the market potential.
Changes Elon Musk Wants In Twitter Inc.
Elon Musk made hundreds of statements on social medial platforms talking about how restrictions are misused by Twitter and free speech concerns.
Elon Musk wants to reinvest in Twitter by dropping ads, free speech, and even turning its headquarters into a shelter for the homeless. Nevertheless, these proposals look speculative at first, but Musk is known for going against the stream.
Following are some famous recent tweets and statements by Musk:
- Having a public platform that is maximally trusted and broadly inclusive is extremely important to the future of civilization.
- 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.
- Twitter needs to be transformed as a private company.
Such statements make it clear that the Tesla CEO is not interested in just buying the company but also in changing how Twitter functions and work.
How He Will Pay?
Musk indeed is the richest man on earth with a financial worth of approx. $265 billion. However, it is unclear how much wealth he can cash out to purchase Twitter seamlessly. If he would sell Tesla shares, shareholders would get upset, and the share prices could also get hurt.
Musk can use his share to take a loan on his stock holdings. But according to Forbes, he has already used half of his Tesla shares to take existing loans. It leaves his SpaceX stake, as it is unclear how much cash he has there.
Is Elon Musk The Right Person To Control Twitter?
The main question that arises in mind after this fiasco is whether Elon Musk is the right person to control or own Twitter? There is a strange ruckus around the social media world after Musk attempts to buy Twitter.
Several influential people are coming forward against Musk’s proposal saying the value of the offer is lower than Twitter’s worth. Furthermore, some are pointing out the hustling move by Musk, aggressively purchasing the company.
What To Expect In Future?
Twitter might be getting watchful for examining the proposal and making a formal statement in response. They might even hire advisors or finance professionals to meticulously study the deal and explore all options in favor of Twitter and its shareholders.
It would be interesting to see how well the offer goes for Musk and how Twitter reacts. How Musk would manage to pay in all cash as his stocks are all tied if the proposal gets accepted.
Comment what you think of the whole Twitter and Elon Musk story. There are a lot of speculations going on, and it is making the tweets even trendier for Elon Musk. Watch out for this space to see what all happens next.