Twitter Update: Elon Musk Set To Buy Twitter
Twitter accepted Elon Musk’s $44 billion bid, ending weeks of uncertainty after Elon Musk purchased a stake in the social media network. Many of the previously published information regarding the purchase was verified. But unfortunately, it left a lot of questions unresolved. Here’s what we know. Musk stated in his initial proposal for Twitter that he would not move from $54.20 per share price, announcing an all-cash purchase. He kept his word, telling an all-cash acquisition. Though his first filing valued the offer at $43 billion, the confirmation on Monday increased that to $44 billion. That’s likely a quirk of the number of shares being counted.
Who Will Own Twitter Now?
This may seem self-evident, yet Twitter has agreed to sell itself to a company wholly owned by Musk. Furthermore, the announcement mentions co-investors, and the phrasing indicates that those who join will be marginal stakeholders.
In addition, we already knew that Goldman Sachs Group Inc. and JPMorgan Chase & Co. were collaborating with Twitter. According to the announcement, Allen & Co. has joined that camp, securing a coveted status as a boutique bank among the Wall Street titans. Bank of America and Barclays Plc joined Morgan Stanley as Musk’s senior advisers.
Who Will Run Twitter?
Both CEO Parag Agrawal and Chairman Bret Taylor were cited in the statement, indicating that they will remain in their positions for the time being. Musk has often posted his discontent with Twitter’s board and how the business has been governed in recent weeks, and management changes are customary when a company is purchased. However, Musk is already the CEO of both Tesla and SpaceX, so his ability to take on another hands-on leadership role may be restricted.
Musk has been outspoken about his aspirations to make the platform a refuge for free online expression, and he has complained that the site into moderates to filter user tweets. He wrote hours before the contract was disclosed, “I hope that even my harshest opponents remain on Twitter since that is what free expression means.” He’s also suggested that the company’s headquarters be converted into a homeless shelter, that adverts for paying users to be removed, and that the platform’s authentication checks be strengthened.