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

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

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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”.

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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:


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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.



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