Billionaire businessman Elon Musk took to Twitter to raise $ 43 billion on Thursday, with Tesla chief executive saying the social media company must be secretive in order to grow into a platform for free speech. “Twitter has incredible power. Open it up,” Musk said. , who is already the second-largest shareholder in the San Francisco-based company, in a letter to the board on Wednesday. The proposal was made public in a regulatory file on Thursday. His donation price of $ 54.20 per share represents a 38% payout until the end of April 1 on Twitter, the last day of trading before his 9.1% stake in the social media platform was released publicly.
Musk declined invitation to join Twitter board
Musk – the richest man in the world with a net worth of $ 273.6 billion according to Forbes figures – turned down an invitation to join the Twitter board this week after revealing his stake, analysts say it shows his intentions to take over as the board chair will limit his own shares. less than 15%. Investors were not immediately sure. Twitter shares about them were slightly lower in daytime trading. Some have argued that Musk’s request is slowly revisiting a small blogging platform that has become a global communication channel for individuals and world leaders.
Saudi Arabian official denied
Saudi Arabian Prince Alwaleed bin Talal wrote on Twitter in his confirmed account about the agreement. Describing himself as one of Twitter’s “biggest and longest-serving shareholders,” he said Musk’s offer looked down on the company and wasted it. review his investment if the board refuses.
“As I make my investment now I see that the company will not succeed or serve this public need in the current way. Twitter needs to be transformed as a private company,” Musk said in a letter to Twitter Chairman Bret Taylor. Musk, who describes himself as a “free speech absolutist,” criticized the social media platform and its policies, and recently conducted a survey on Twitter asking users if they believed it was in line with the principle of free speech.
While Donald blocked the twitter account, Musk said
After Twitter blocked former President Donald Trump out of concern over the escalation of violence following last year’s US Capitol attacks by his supporters, Musk wrote on Twitter: “Most people will not be too happy about West Coast high tech as a free speech mediator.” also with Sirius XM’s Americano Media on Wednesday – before Musk’s announcement – Trump said he “probably would not be interested” in restoring Twitter, where he had more than 88 million followers.
Employees of the company, some of whom were shocked by Musk’s impact on his content rating, were expected to attend a hands-on Twitter meeting later on Thursday. He did not say how he would finance the transaction if it continued.
CFRA analyst Angelo Zino said
“We think Musk could look to finance the transaction, if approved, by using a combination of credit and potential shares with Tesla. Given the size of the transaction (approximately $ 43B), we think it is possible that some of Tesla’s shares could be sold off. in the company, ”said CFRA Research analyst Angelo Zino.
Musk sold more than $ 15 billion in shares of Tesla, about 10% of his share in the automotive manufacturer, last year to meet its tax obligations. The increase in Twitter users’ lower than expected in recent months has raised doubts about its growth, as it pursues larger projects such as audio chat rooms and newsletters. ” its irresponsible, “said Michael Hewson, chief marketing analyst at CMC Markets.
Twitter does not determine Musk’s fate
Twitter will not decide on the future of Musk’s application on Thursday, according to a source familiar with the situation. The board discussed the terms of the mathematical testing program and asked its advisers to review the application and wait for the results, the source said. Musk has garnered more than 80 million followers since joining Twitter in 2009 and has used it to make a few announcements, including making fun of Tesla’s privacy deal that put him in hot water with regulators.
“If he really wants to keep Twitter secret his past runs and regulators will not be a hindrance – but it could make potential financial sources hope to provide contract funding – unless he is willing to promise a large portion of his Tesla to hold debt,” Howard said. Fischer, a colleague at the Moses & Singer law firm and a former U.S. Attorney General Securities and Exchange Commission (SEC). Musk’s move also raises the question of whether other buyers may appear on Twitter.
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