Elon Musk, a billionaire, has taken control of Twitter in one of the largest tech deals in history. Musk paid around $44 billion for the social network, with shares valued at $54.20. On April 14, Musk revealed his takeover attempt, calling it his ‘best and last offer.’
Why has Elon Musk been so eager to acquire Twitter?
On the platform, he has always advocated for ‘free speech.’ Musk stated in his disclosure to the US Securities and Exchange Commission, “It invested in Twitter because I believe in its potential to be the venue for free expression throughout the world, and I think free speech is a societal requirement for a functioning democracy.” “Twitter has great potential,” he stated in the filing. “I’ll get it unlocked.”
Musk has already floated the idea of privatizing Twitter. “If our Twitter bid succeeds, we will destroy the spambots or die trying!” he tweeted recently. Following this, he made another post, claiming that everyone on the site should be authorized.
“Free speech is the foundation of a functional democracy, and Twitter is the digital town square where important issues affecting humanity’s future are discussed.” I also want to make Twitter better than ever by adding new features, opening up the algorithms to boost trust, combating spam bots, and authenticating all people.
The Tesla co-founder has already spoken on the necessity for an ‘Edit Button’ on the platform and even ran a poll. He purposefully misspelled yes and no, apparently to emphasize the need for an edit button, given people’s frequent errors when tweeting.
“I look forward to working with the company and the community of users to unleash Twitter’s immense potential,” Musk stated in a press release issued to his Twitter account.
What is Elon Musk’s Twitter track record?
Mr. Musk, who has more than 80 million Twitter followers, has a tumultuous past on the network.
US financial authorities accused him of deceiving Tesla investors with his tweets in 2018, allegations settled for $40 billion, and Mr. Musk continues to reject them.
In 2019, he was sued for slander, which he won, after labeling a diver involved in the rescue of schoolboys in Thailand “pedo man” on the platform.
On Monday, Mr. Musk, who has a history of squabbling with journalists and blocking critics, hinted that he regarded Twitter as a place for dialogue.
He said only hours before the contract was disclosed, “I hope that even my harshest opponents remain on Twitter since that is what free expression means.”
Is it possible for Musk to turn Twitter around?
Twitter’s shares will be delisted, and the company will be taken private as part of the buyout, which is scheduled to conclude later this year.
Mr. Musk claims that this will allow him to modify the company as he sees fit.
He has proposed, among other things, enabling lengthier posts and allowing users to amend them after they have been published.
Following the announcement of the acquisition, Twitter’s stock rose more than 5% on Monday.
However, it remained below Mr. Musk’s $54.20 per share bid, indicating that Wall Street feels he is overpaying for the company.
Mr. Musk has stated that he is unconcerned about the purchase’s finances. He will, however, be taking on a corporation with a questionable financial track record.
Twitter has never made a profit despite its popularity, and user growth has stagnated, notably in the United States.
The company, which started in 2004, finished 2021 with $5 billion in sales and 217 million daily users worldwide, a fraction of the numbers reported by rival platforms like Facebook.
Twitter’s board chair, Bret Taylor, said the company had thoroughly evaluated Mr. Musk’s offer and that it was “the best way ahead for Twitter’s investors.”
In November, Parag Agrawal took over as the co-founder of Twitter, Jack Dorsey.
It’s unclear who will be in charge of the firm in the future. Last November, Parag Agrawal took over as CEO of Twitter, succeeding co-founder and former CEO Jack Dorsey.
Mr. Musk, on the other hand, stated in his offer paper to Twitter’s board of directors, “I don’t have faith in management.”
On Monday, Mr. Agrawal reminded Twitter staff that the company’s future is uncertain.
The Reuters news agency remarked, “Once the sale happens, we don’t know which path the platform will take.”
Twitter’s new king is Elon Musk.
The rapidity of this change shocked many minds in Silicon Valley.
Elon Musk has emerged as the undisputed king of Twitter.
He has stated that it is not about “economics” but rather about “power and influence.”
He will have full power over Twitter if he takes the company private.
He has complete control over the corporation and can do whatever he wants. In reality, this will imply a considerably softer approach to moderation.
He also claims he’ll make Twitter’s algorithm public so that people can learn more about how it works.
The change opens the door for Donald Trump to return to the site. However, he has reportedly stated that he would prefer to utilize his own social media network, Truth Social, for the time being.
For years, conservatives have claimed that Twitter is biased against them, and the news has pleased Republicans in the United States.
Others have expressed concern about what Twitter may become if significant platform moderation is not implemented.
Imagine how much Elon Musk will face in the wake of Facebook’s failure to remove groups tied to the QAnon conspiracy theory or the Stop the Steal movement.
The issue that Twitter currently confronts is that unrestricted free expression on social media may quickly devolve into something repulsive.