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Elon Musk Finally Buys Twitter for $44bn – How Did He Do It?

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Elon Musk is a Twitter fanatic. With 83.8 million followers, he has a sizable following. He tweets a lot, sometimes controversially, and sometimes disastrously. The World Richest man suddenly proposed to buy Twitter some weeks back, and now, they agreed to the deal.

Elon Musk, who made the surprise bid less than two weeks ago, claimed that Twitter had “tremendous potential” that he would unleash.

He also demanded a slew of changes, ranging from loosening content restrictions to eliminating fake accounts.

The company initially turned down Mr. Musk’s offer, but it will now put the deal to a vote among shareholders.

According to Forbes magazine, Mr. Musk is the world’s richest person, with a net worth of $273.6 billion, owing largely to his ownership of electric vehicle maker Tesla, which he also runs. He is also the CEO of SpaceX, an aerospace company.

Elon Musk acquires Twitter

Elon Musk wanted to be the new Boss

Musk isn’t the first Twitter shareholder to express dissatisfaction with the company’s management.

Elliott Management, an activist investment firm, bought a stake in Twitter in 2020, citing reports that the platform’s CEO, Jack Dorsey, was distracted and that it was not rapidly adding innovative new products.

Jack Dorsey withstood the initial pressure but resigned in November of last year, and his replacement, Parag Agrawal, was promoted from chief technology officer to CEO.

Musk made it clear in a message to Twitter chairman Bret Taylor that if he buys the company, another executive shake-up is on the way.

Can Elon Musk Make Twitter Better?

Twitter’s shares will be delisted and the company will be taken private as part of the takeover, which is expected to close later this year.

Mr. Musk claims that this will allow him to make the changes he wants to the company. He has proposed, among other things, allowing longer posts and allowing users to edit them after they have been published.

Following the announcement of the deal, Twitter’s stock rose more than 5% on Monday. However, it remained below Elon’s $54.20 per share offer, indicating that Wall Street believes he is overpaying for the company.

Elon Musk has stated that he is unconcerned about the purchase’s economics.

He will, however, be taking on a company with a shaky financial track record. Despite its popularity, Twitter has never made a profit, and user growth has slowed, particularly in the United States.

The company, which was founded in 2004, ended 2021 with $5 billion in revenue and 217 million daily users worldwide, far less than other platforms such as Facebook.

Twitter’s board chair, Bret Taylor, said the company had thoroughly evaluated Elon Musk’s offer and that it was “the best path forward for Twitter’s stockholders.”

How did He Acquire Twitter?

Mr. Musk’s campaign against Twitter has progressed at a breakneck pace. In early April, it was revealed that he had become the firm’s largest shareholder, with a 9.2 percent stake.

He was then invited to join Twitter’s board of directors, but declined, before making a surprise bid for the company on April 14th, claiming that he wanted to “unlock” its potential as a bastion of free speech.

Twitter attempted to deter him by threatening to dilute the shares of anyone who purchased more than a 15% stake in the company. However, after Mr. Musk revealed more financial details about his proposed bid, the company’s position shifted.

elon-musk twitter

 

Mr. Musk’s campaign against Twitter has progressed at a breakneck pace.
In early April, it was revealed that he had become the firm’s largest shareholder, with a 9.2 percent stake.

He was then invited to join Twitter’s board of directors, but declined, before making a surprise bid for the company on April 14th, claiming that he wanted to “unlock” its potential as a bastion of free speech.

Twitter attempted to deter him by threatening to dilute the shares of anyone who purchased more than a 15% stake in the company.
However, after Mr. Musk revealed more financial details about his proposed bid, the company’s position shifted.

The Likely Changes Elon Musk Might Bring

Asides from the fact that Donald Trump’s Twitter account will most likely be reinstated, some changes will most likely come to Twitter under the leadership of Elon Musk.

Haha – I almost forgot. Twitter might have an edit button once again, although I do not personally support that idea, because it will definitely be misused. We can forgive typos, can’t we?

Twitter confirmed that the edit button concept had been considered.

Other suggestions made by Musk include making Twitter’s algorithm open source, which would allow users to see the algorithm that curates what they see. Users should be able to see if their tweets have been promoted or demoted, according to Musk.

Musk wants to change Twitter’s main business model, which is based on advertising. He claims to be more interested in subscriptions, which could be difficult to sell in a world where all of the major social networks are free to use.
Users on Twitter may decide that they don’t want their data to be used to monetize them and are willing to pay for it – but it’s a risk.

He is the world’s richest man and a serial entrepreneur whose accomplishments include PayPal and Tesla.
He’s charismatic and unfiltered, which makes him a dangerously loose cannon. He enjoys pushing boundaries and breaking rules. So, he’s most likely to come up with even ideas we haven’t thought of yet.

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