Elon Musk secured a deal to buy Twitter for $ 44 billion on Monday in a bid to change the control of a social media platform full of millions of users and world leaders for the richest man in the world.It is a pivotal moment for this 16-year-old company, which emerged as one of the most influential public spaces in the world and is now facing a series of challenges.
Musk criticized Twitter ratings, calling itself the absolutist of free speech, saying Twitter’s algorithm for prioritizing tweets should be public, and criticized giving too much power to the service to advertising companies. Political activists expect the Musk regime to impose minor sanctions and repatriation of banned individuals including former President Donald Trump. Conservatives rejoice at the prospect of a few regimes while some human rights activists expressed fears of an increase in hate speech
Musk himself described the easy-to-use tweaks on the service, such as editing and filtering “spam bots” that send large amounts of unwanted tweets. Negotiations over the deal, which seemed uncertain last year, escalated over the weekend after Musk solicited shareholders on Twitter with financial details of his application.
Under pressure, Twitter began negotiating with Musk to buy the company at its proposed price of $ 54.20 per share.”Freedom of speech is the foundation of a functioning democracy, and Twitter is a city forum where important issues for the future of humanity are discussed,” Musk said in a statement. Twitter shares rose 5.7% on Monday to close at $ 51.70. The deal represents about 40% of the closing price on the day before Musk revealed he had bought a stake of more than 9%.However, offers are below the $ 70 range where Twitter traded last year.
Jonathan Boyar, managing director said
“I think if the company had been given enough time to convert, we would have done much more than what Musk is currently offering,” said Jonathan Boyar, managing director of the Boyar Value Group, a Twitter user. However, he added, “If the public markets do not properly value the company, the acquirer will eventually do it.”
Musk’s move continues the tradition of controlling the purchase of billions of influential news platforms, including the acquisition of Jeff Bezos by the Washington Post in 2013.
Twitter said Musk had secured $ 25.5 billion in debt and margin loans and was offering a $ 21 billion equity commitment. Musk, who is worth $ 268 billion, according to Forbes, said he did not care much about Twitter’s economy.
“Having a more public and more inclusive public forum is crucial to the future of civilization. I have no interest in the economy,” he said in a recent public address.
Parag Agrawal,chief executive said
Musk is the chief executive of both electric car maker Tesla and aerospace company SpaceX, and it is unclear how much time he will devote to Twitter or what he will do. Once the agreement is closed, we do not know where the stadium will go, ”Twitter chief executive Parag Agrawal told staff on Monday.
Edward Moya, a currency broker analyst, OANDA, said the deal shows different benefits.”This is good news for shareholders on Twitter as it looks like the company will fix things soon,” Spirit said sending an email to customers. On the other hand, he said, “Tesla shareholders can not be happy that Musk will have to pay more attention to winning the EV (electric car) race. However, Musk’s 84 million strong Twitter account is considered important, free public relations and Tesla’s marketing tool.
Twitter activity has been approved by the company board and is now under the vote of shareholders. No control barriers were expected, analysts said.Daniel Ives, an analyst at Wedbush, said the company’s board of directors was “against the wall” when Musk outlined his financial portfolio and no other buyers appeared. Although it is only about one-tenth of the size of major social media platforms like Meta Platforms Inc’s (FB.O) Facebook, Twitter is said to have helped fuel the Arab Spring uprising and is accused of participating in Jan. 6, 2021, U.S. invasion Capitol.
After Twitter blocked Trump over concerns about the escalation of violence following the US Capitol attacks by his supporters, Musk wrote on Twitter: “Most people will not be as happy with West Coast high tech as the freedom of speech activist.” Trump, whose Twitter-based rival company called Community Truth, said in an interview with Fox News on Monday that he would not return to Twitter.
The White House on Monday declined to comment on Musk’s agreement, but said President Joe Biden had long been concerned about the power of social media.”Our concern is not new,” said White House spokeswoman Jen Psaki, adding that the platforms must respond. “The president has long been voicing his concerns about the power of social media, including Twitter and others, to spread false information.”
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