New York is the capital of the United States of America (CNN) Twitter announced on Monday that it has agreed to sell itself to Elon Musk for $44 billion in a transaction that may expand the billionaire's commercial empire and place him in command of one of the world's most influential social networks.
In little than a month, the Tesla and SpaceX CEO became one of Twitter's largest shareholders, was offered and rejected a seat on its board, and made a bid to buy the firm.
Shareholders will receive $54.20 in cash for each share of Twitter stock they own under the terms of the transaction, which matches Musk's original offer and represents a 38 percent premium over the stock price the day before Musk declared his investment in the firm.
"Free speech is the backbone of a functional democracy, and Twitter is the digital town square where important issues affecting humanity's future are debated," Musk said in a statement on Monday. "I'm excited to work with the company and the Twitter community to realize its full potential."The purchase is anticipated to finalize this year, after being unanimously authorized by Twitter's board of directors. It comes after Musk stated last week that he had secured $46.5 billion in finance to buy Twitter, a move that appears to have prompted Twitter's board to seriously explore the purchase. Musk's offer was discussed by the board on Sunday.
Twitter independent board chair Bret Taylor said in a statement that the purchase was "the greatest path ahead for Twitter's stockholders" after "a rigorous and exhaustive process to review Elon's proposal with a deliberate focus on value, clarity, and finance."Following the announcement of the agreement, Twitter stock jumped nearly 6% to $51.84, slightly below the offer price. Shareholders and regulators must both approve the acquisition.
Twitter CEO Parag Agrawal said in an internal message obtained by CNN that he would meet with Taylor on Monday afternoon for an all-hands meeting to answer questions regarding the deal. "I understand this is a big change for you, and you're probably thinking about what it means for you and Twitter's future," he continued.Musk's Implications for Twitter
Musk is a well-known and controversial Twitter user. On the network, he has over 83 million followers and has used it for everything from sharing memes and discussing his businesses to attacking politicians, distributing false information on Covid-19, and making derogatory remarks about the transgender community.
Musk has stated several times in recent days that his goal is to support free expression on Twitter and to "unlock" the platform's "amazing potential."Musk said he wants to "make Twitter better than ever by upgrading the product with new features, making the algorithms open source to improve trust, fighting spam bots, and authenticating all people" in his statement Monday. In a another tweet on Monday, he stated that he hopes "even my harshest detractors remain on Twitter, because that is what free expression means."
Nonetheless, some industry experts are concerned that Musk's desire for free speech on Twitter may result in the platform's efforts to combat hate speech, misinformation, harassment, and other bad content being rolled back. Others wondered if Musk might reinstate former President Donald Trump's Twitter account, which was suspended during the Capitol Riot earlier this year for breaking Twitter's anti-incitement policy. A move like this might have major implications for the future presidential election in the United States in 2024.
While Twitter is smaller than some of its social media competitors, it wields a disproportionate amount of power in both the online and offline worlds because it is used by many politicians, public figures, and journalists, and has served as a model for other platforms in terms of how to handle harmful content.
"Do not allow Twitter to become a breeding ground for hate speech or falsehoods that undermine our democracy," warned Derrick Johnson, the NAACP's president, in a statement issued after the deal was announced on Monday.For Twitter, this is a new and unpredictable period.
Many Twitter followers worried whether the firm would try to find another buyer in the days since Musk's initial bid, especially after the corporation implemented a poison pill to make it more difficult for Musk to acquire the company without its consent.
However, according to CFRA senior equities analyst Angelo Zino, Twitter's board of directors may have taken Musk's offer more seriously because "an alternative bid from a 'white knight' may be tough to come by, especially given the recent decrease in asset prices from social media businesses."
It's unclear whether Agrawal, who succeeded founder Jack Dorsey as CEO in November, will stay on. Musk earlier compared Agrawal to former Soviet despot Joseph Stalin in a meme. In his offer letter to purchase Twitter, Musk also stated that he "does not have faith in management."
The deal, on the other hand, might bring an end to over a decade of turmoil at Twitter as a public business, during which it has gone through several CEOs, dealt with an activist investor, and failed to develop and successfully monetize its significant user base.
"Twitter has a purpose and relevance that influences the entire globe," Agrawal said in a statement released on Monday. "Deeply proud of our teams," he continued, "and inspired by work that has never been more important."
[zombify_post]
0 Comments