CALIFORNIA (Washington Insider Magazine) – Twitter’s board members have accepted Elon Musk’s $44 billion acquisition bid.
Musk, who made the surprise offer less than 2 weeks ago, stated Twitter had “tremendous potential” that he would unlock.
He also sought a slew of improvements, ranging from relaxing content regulations to eliminating fake accounts.
The company first turned down Musk’s offer, but it will now put the proposal to a vote among shareholders.
According to Forbes magazine, Musk is the world’s wealthiest man, with a total wealth of $273.6 billion, mainly due to his ownership of electric vehicle company Tesla, which he also controls. He is also the CEO of SpaceX, an aerospace company.
“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,” Musk noted in a release announcing the agreement.
“Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it,” he said.
The decision comes as lawmakers and authorities put increasing pressure on Twitter over the information that surfaces on its platform. Its attempts to moderate disinformation on the site have garnered criticism from both the right and the left.
It blocked ex – President Donald Trump, possibly its most influential user, last year in one of its biggest high-profile measures, citing the possibility of “incitement of violence.”
The right wing in the United States has reacted positively to the news of the acquisition, but Trump assured Fox News on Monday that he had no intentions to return to the site.
The White House did not respond to a request for remark on the takeover.
Musk, who has over 80 million Twitter followers, has a tumultuous past on the platform.
Musk was accused of deceiving Tesla stockholders with his tweets by US financial authorities in 2018, allegations that were addressed in a $40 million deal that Musk continues to reject.
In 2019, he was sued for slander, which he won, after labeling a diver involved in the rescue of school children in Thailand “pedo guy” on the site.
Musk, who has a history of sparring with reporters and blocking critics, said on Monday that he regarded Twitter as a place for dialogue.
He said only hours before the contract was disclosed, “I hope that even my worst critics remain on Twitter, because that is what free speech means.”
Twitter’s stock will be removed and the company will be turned private as part of the acquisition, which is scheduled to conclude later this year.
Musk claims that this will allow him to make the adjustments he intends to the company.
He has proposed, among other things, enabling lengthier posts and allowing users to edit them even after they have been posted.
Following the announcement of the acquisition, Twitter’s stock rose more than 5% on Monday.
However, the price stayed below Musk’s $54.20 per share offer, indicating that Wall Street feels Musk is overpaying for the company.
Musk has stated that he is unconcerned about the purchase’s finances. He will, however, be taking on a corporation with a shaky financial track record.
Despite its popularity, Twitter has never made a profit, and user growth has stagnated, notably in the United States.
The firm, which was started in 2004, finished 2021 with $5 billion in sales and 217 million regular users worldwide, far less than rival sites such as Facebook.
Twitter’s board chair, Bret Taylor, said the company had carefully considered Musk’s proposal and determined that this was the best way forward. It’s unclear who will be in charge of the firm in the future. Parag Agrawal, who assumed charge from co-founder and previous CEO Jack Dorsey in November, is the current CEO of Twitter.
On Monday, Agrawal reminded Twitter staff that the company’s future is questionable.
Musk’s pursuit of Twitter has progressed at a breakneck pace. In early April, it was revealed that he is now the firm’s largest stakeholder, with a 9.2 percent interest.
He was subsequently invited to join Twitter’s board members, but declined, before making a surprise offer for the corporation 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 devalue the shares of anyone who purchased more than a 15% interest in the company. According to BBC NEWS, the company’s position changed when Musk provided additional financial specifics about his potential bid.
He has acquired $25.5 billion in finance for the transaction and will own a $21 billion interest in the company.
The proposal was unanimously authorized by the board, and it will now be put to a vote among shareholders.
Many people’s heads in Silicon Valley have been spinning as a result of the pace with which this change has occurred.
Elon Musk has emerged as the undisputed king of Twitter.
He has stated that it is not about “economics,” but rather about “power and influence.”
He will have complete power over Twitter if he takes the firm private.
He has complete control over the corporation and can do whatever he wants with it. In reality, this will imply a considerably softer approach to moderation.
He also claims he’ll make Twitter’s algorithm accessible so that users can learn more about how it works.
The move opens the possibility of Donald Trump returning to the site, however he has reportedly stated that he would prefer to utilize his own social media platform, Truth Social, for the time being.
Conservatives have claimed for years that Twitter is biased against them, and the development has elated Republicans in the United States.
Others have expressed concern about what Twitter may become if significant platform moderation is not implemented.
Take a look at how much Facebook has been criticized for not removing groups tied to the QAnon conspiracy theory or the Stop the Steal movement to get an idea of how much Elon Musk will be criticized.
The issue that Twitter currently confronts is that unrestricted free expression on social media may easily devolve into something quite unpleasant.
