Twitter on Monday confirmed it is selling the platform to the billionaire entrepreneur, Elon Musk in a deal valued at $44 billion.
This deal came as a dramatic shift for the board, which had initially refused Musk’s bid, and maneuvered to block Musk from taking the social media network private.
This agreement was reached after Musk had made a shock bid in less than two weeks ago, where he said, “Twitter had tremendous potential that he looks forward to unlocking it.”
However, Musk has called for a series of changes on the micro-blogging platform after it reached the agreement to take over the platform ranging from the content restrictions to the eradication of fake accounts.
In announcing the takeover, Must tweeted that “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.”
He added that, “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam boots and authenticating all humans.”
Musk had taken a major stake in the firm earlier this month before lining up last week some $46.5 billion financing to push forward with the purchase.
Twitter board chair, Bret Taylor said, “The body conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty and financing.”
According to the statement by the Twitter board chair, “The proposed transaction will deliver a substantial cash premium and we believe it is the best path forward for Twitter’s stockholders.”
However, the polarizing Tesla chief’s campaign to buy the social media giant sparked concern that his unpredictable statements and alleged bullying are contradictory to his stated aims for the platform.
This move comes as Twitter faces growing pressure from politicians and regulators over the content that appears on its platform. It has drawn critics from various sources over its efforts to mediate misinformation on the platform.
The right in the U.S. has cheered the news of Musk taking over the micro-blogging platform, although, Mr Trump, U.S. Ex-president, on Monday, told Fox News he had no plans to re-join the platform.
What you have missed
Tesla CEO Elon Musk on Monday, 5th April, 2022 posted a Twitter poll asking his more than 80 million followers whether they need an edit button for their tweets on the micro-blogging platform. “Do you want an edit button?” Musk asked in the tweet, which has two options – ‘yes’ and ‘no’.
Musk being a major critic of the micro-blogging platform had last month (March) put up a poll, asking his followers whether the social media platform adheres to the principles of free speech.
However, at that moment, it was not clear what Musk was planning with this large shareholding in Twitter.
Elon Musk has offered to buy 100% of Twitter for $54.20 per share in cash to make it a private company on the 14th April 2022. Where he stated that, “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.”
A Twitter investor filed a lawsuit against billionaire Elon Musk in federal court in Manhattan for and on behalf of “all investors who sold or otherwise disposed of Twitter Inc. securities between March 24, 2022, and April 1, 2022, inclusive.”
According to the lawsuit’s facts, Elon Musk began buying Twitter shares in January and by March 14 had obtained over 5% ownership in the company.
Musk reportedly did not file the paperwork until he had amassed a 9.1% interest in Twitter.
According to the suit, the delay allowed Musk to buy more shares of Twitter at a lower price and cheat sellers of Twitter stock out of increased profits.
The plaintiff maintained that by keeping his growing stake in Twitter quiet, Musk was able to artificially keep the price of the stock down and buy it at a premium.