Elon Musk buys Twitter for $44bn (£34.5bn) as the board has agreed to the offer. “Twitter has a lot of potentials,” said Mr. Musk, who made the bid less than two weeks ago. He said he would open it up.
Also, he called for a lot of changes, from letting people post more freely to getting rid of fake accounts. The company didn’t like Mr. Musk’s offer at first, but now it wants shareholders to vote on whether or not the deal should go through.
Mr. Musk is the richest person in the world, according to Forbes magazine, with an estimated net worth of $273.6 billion. This is mostly because he owns a lot of shares in the electric car company Tesla, which he runs. He also runs the space company SpaceX.
Related: Elon Musk formed a trio of holding companies as he fights to acquire Twitter – Find the details here!!
Elon Musk wants to buy Twitter because he thinks it would be good for the company.
When the deal was announced, Musk said that “free speech is the bedrock of a functioning democracy, and Twitter is where important issues for the future of humanity are debated.”
As he said, “I also want to make Twitter better than ever by adding new features, making the algorithms public so people can trust them, getting rid of spambots, and verifying all people.”
“Twitter has a lot of potentials, and I can’t wait to work with the company and the people who use it to get it.” You can find the tweet on the official id of Elon Musk Twitter.
Elon Musk buys Twitter move comes at a time when politicians and regulators are becoming more concerned about what people see on Twitter. From both the left and the right, people aren’t happy with how it tries to stop misinformation on the platform.
The company made one of its most high-profile moves last year when it banned former US President Donald Trump, one of its most powerful users, because of the risk of “inciting violence.” “A lot of people are going to be very unhappy with West Coast high tech as the main arbiter of free speech,” said Mr. Musk at the time.
In the US, the news of the takeover has been cheered by the right. On Monday, President Trump told Fox News that he had no plans to rejoin the platform.
How did it happen?
It’s been a long time coming for Mr. Musk to target Twitter. People found out at the beginning of April that he had a big stake in the company. He now owns 9.2% of the company.
He was then asked to join Twitter’s board, but he turned it down before making a surprise bid for the company on April 14. He said he wanted to “unlock” the site’s “potential as a bastion of free speech.”
If someone bought more than 15% of the company, Twitter would cut its shareholdings in half. This was to try to stop him from buying more. However, after Mr. Musk gave more financial information about his plan, the company changed its mind.
He will get a $21bn stake in the company and get $25.5bn of financing for the deal. This will now go to shareholders for a vote. The board unanimously agreed to the bid.
What changes are expected after Elon Musk Buys Twitter?
Shares in Twitter will be taken off the stock market as part of the takeover that is expected to happen later this year. Twitter will also be taken private. Mr. Musk says this will give him the power to make the changes he wants to the business.
Among other things, he has suggested letting people write longer posts and giving them the ability to change them after they’ve been published. The deal was announced on Monday, and Twitter shares rose more than 5% Monday.
As Elon Musk buys Twitter, his $54.20 per share offer was still lower than the price. This means Wall Street thinks he is paying too much for the company. This is what Musk has said: he doesn’t care about how much money he spends on a new car. However, he will take on a company with a bad track record of making money.
Twitter has a lot of power, but it hasn’t made money in a long time, and user growth has slowed in the United States. The company, which was founded in 2004, made $5 billion in revenue and had 217 million daily users around the world in 2021. That’s a lot less than the numbers other platforms like Facebook say they have.
A board member who chairs Twitter’s board said that the company had looked at Musk’s offer and that it was “the best path forward for Twitter’s stockholders.”
That’s it for now!! For more details, stay tuned with us.