wordpress blog stats
Connect with us

Hi, what are you looking for?

, ,

Twitter falls in the hands of Elon Musk for $44 billion

The journey of Musk’s acquisition of Twitter had several twists.

Twitter Icon

Tesla CEO Elon Musk is now the new owner of Twitter after the company announced that it has entered into a definitive agreement with Musk, according to a press release. Musk will be acquiring Twitter at $54.20 per share in cash in a transaction valued at approximately $44 billion, the release added.

This means that Twitter, which had gone public in 2013, will again become a privately-held company. Bret Taylor, Twitter’s Independent Board Chair, explained that the company’s board conducted a “thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing.”

“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,” Musk said in a statement. He added that he plans to bring in new features, make Twitter’s algorithms open source, defeat the spam bots, and authenticate “all real humans”.

Twitter’s shareholders will be paid out a 38 percent premium to Twitter’s closing stock price on April 1, 2022, which was the last trading day before Musk disclosed his nine percent stake. The company said that the transaction is expected to close in 2022.

Musk has repeatedly stated that Twitter should be doing a lot more around free speech. However, it remains to be seen what kind of changes Musk brings to Twitter as a platform and as a business. It is also unclear how Musk plans to address the problem of hate speech that plagues Twitter.

How did Musk come to buy Twitter?

The journey which concluded with Musk’s acquisition of Twitter was a topsy-turvy one. It started when Musk, who is one of the most avid users of the microblogging site, tweeted that Twitter was not exploiting its full potential. He accused Twitter of not upholding the values of free speech thereby “undermining democracy”.

Advertisement. Scroll to continue reading.

It then came to light that Musk has bought a nine percent stake worth $3 billion, making him the largest shareholder. The investment carried with it a seat on Twitter’s board. It was revealed that Musk will be joining the company’s board.

But in a U-turn, Twitter CEO Parag Agarwal released a statement saying that Elon Musk has decided to not join the board. He did not divulge the reason behind this decision.

The saga continued when Musk moved to buy the entire platform in order to implement his vision for the site. The board seemed unconvinced at first and said that it was exploring the option of a poison pill.

The news of a deal between Twitter and Musk started doing the rounds 24 hours prior to the official announcement. The New York Times had reported that a deal was imminent. It came as a surprise as the board seemed adamant about the poison pill. It seems likely they were swayed by Musk’s plan to raise funds for the deal. The world’s richest person persisted in his efforts and laid out a plan to finance the deal.

Here’s what you can read to know more about the saga

We have compiled several Twitter threads that shed light on the various implications of Musk’s acquisition of Twitter:

 

Also Read:

Have something to add? Post your comment and gift someone a MediaNama subscription.

Written By

I cover several beats such as Crypto, Telecom, and OTT at MediaNama. I can be found loitering at my local theatre when I am off work consuming movies by the dozen.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

Do we have an enabling system for the National Data Governance Framework Policy (NDGFP) aiming to create an repository of non-personal data?

News

A viewpoint on why the regulation of cryptocurrencies and crypto exchnages under 2019's E-Commerce Rules puts it in a 'grey area'

News

India's IT Rules mandate a GAC to address user 'grievances' , but is re-instatement of content removed by a platform a power it should...

News

There is a need for reconceptualizing personal, non-personal data and the concept of privacy itself for regulators to effectively protect data

News

Existing consumer protection regulations are not sufficient to cover the extent of protection that a crypto-investor would require.

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ