ELON MUSK HAS AGREED TO BUY TWITTER FOR $44 BILLION

The board of directors of Twitter said Monday afternoon that they had agreed to buy the company from Tesla CEO Elon Musk for $44 billion, ending a weeks-long fight and ushering in a new era for the struggling social media platform.

Musk wants to make Twitter more like a free-speech platform

Elon Musk, the CEO of Tesla, has said that he wants to buy Twitter in order to make it more like a free-speech platform. He will pay $54.20 per share for the company, which he says he will take private.

It’s important for people to be able to speak freely in order for a democracy to work, and Twitter is the digital town square where important issues are debated.

Musk explained that it’s also important for him to make Twitter even better than before. He wants to add new features. Musk also wants to make the algorithms public so that more people can trust them. They may defeat spam bots, and authenticate all humans. This social networking service has a lot of potential, and I can’t wait to work with the company and the people who use it to get it.

“We think that the proposed deal will give this social networking service stockholders a lot of money. Moreover, we also think it is the best way for Twitter to move forward,” Twitter board chair Bret Taylor said.

Twitter shares were trading at $51.98 each before the pause

Trading in Twitter’s stock was stopped before the announcement. Twitter shares were trading at $51.98 each before the pause. This meant that investors were not sure if the deal would work out.

When Jeff Bezos bought the Washington Post in 2013, he paid $44 billion for it. Musk is paying more than 175 times as much for Twitter at $44 billion.

People on Twitter’s board met on Monday to talk about what Tesla CEO Elon Musk had said about taking over the company. They agreed that it was a good idea. Early on Monday, Reuters said that Musk had wooed investors with the specifics of his plan. It was which some of the company’s biggest shareholders didn’t like at first.

“Poison pill” strategy to try to stop Musk from taking over the company

The board had used a “poison pill” strategy to try to stop Musk from taking over the company. It gave shareholders a chance to buy more stock at a discount, which would lower the value of the company in the hope that Musk would not try to take it over.

After Musk got $46.5 billion in the financing, investors told the board to take the offer seriously. It’s said that Musk and the board members talked on Sunday. They kept talking until the early hours of Monday morning.

This social networking service couldn’t get a so-called “go-shop” provision from Musk, which would have let it get other bids from other potential buyers after the deal was signed, it was said earlier today.

If another party wants to buy Twitter, it could pay Musk to break up with them, sources say.

While the two sides were talking, an agreement was not a sure thing, especially after board members raised several possible red flags, like Musk’s ongoing legal battles with the SEC.

Dan Ives, a managing director at Wedbush Securities, said in a note: “The Board got some extra time with the poison pill, but in the end, they had to negotiate with Musk to get this deal done”. This soap opera is now over, so we don’t think there will be any big problems with the deal going through.

Musk surprised Wall Street this month

Musk surprised Wall Street this month when he said that he had bought a 9.2% stake in the company.

After a few days, however, he turned down an invitation to join the board of directors. This set up a showdown that led to his hostile takeover bid of the company.

Users who are more liberal aren’t happy about Tesla CEO Elon Musk’s purchase of Twitter. On the contrary, pro-Republican voices who want Twitter to bring back former President Trump are excited about the deal.

During the riots at the US Capitol on January 6, 2021, Trump was banned from Twitter and other big social media sites.

Tesla CEO Elon Musk has said he wants to see less strict rules for content on this social networking service. However, he has not said whether or not Trump can return to the site. Then, Trump himself said that even if SpaceX CEO Elon Musk let him, he won’t use the platform again. Instead, he plans to use his own Twitter-like service called TRUTH Social, even though he hasn’t used it since February.

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