Elon Musk, has clinched a deal to buy Twitter Inc for $44 billion in a transaction that will shift control of the social media platform populated by millions of users and global leaders to the world’s richest person.
According to some news sources, discussions over the deal, which last week appeared uncertain, accelerated over the weekend after Musk wooed Twitter shareholders with financing details of his offer. Under pressure, Twitter started negotiating with Musk to buy the company at his proposed $54.20 per share price, according to reports.
Musk, who calls himself a free speech absolutist, has criticized Twitter’s moderation. Sources reveal that he wants Twitter’s algorithm to prioritize tweets to be made public and object giving too much power of the service to corporations that advertise.
“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 recently said in a statement.
Per some reports, political activists expect that a Musk regime will mean less moderation and reinstatement of banned individuals including former President Donald Trump. While some have cheered the prospect of fewer controls, some human rights activists voiced fears of a rise in hate speech.
Musk has also advocated user-friendly tweaks to the service, such as an edit button and defeating “spam bots” that send overwhelming amounts of unwanted tweets.
Jack Dorsey Thanks Elon
Former Twitter CEO, Jack Dorsey weighed in on the deal with a series of tweets that thanked both Musk and current Twitter CEO, Parag Agrawal for “getting the company out of an impossible situation”.
“Twitter as a company has always been my sole issue and my biggest regret. It has been owned by Wall Street and the ad model. Taking it back from Wall Street is the correct first step,” Jack said.
According to reports, Twitter shares rose 5.7% on Monday, April 25, 2022, to finish at $51.70. The deal represents a near 40% premium to the closing price the day before Musk disclosed he had bought a more than 9% stake, reports disclosed.
“I think if the company was given enough time to transform, we would have made substantially more than what Musk is currently offering,” Jonathan Boyar, who is Managing Director at Boyar Value Group, which holds a stake in Twitter said. However, he added, “If the public markets do not properly value a company, an acquirer eventually will”.
Musk’s move continues a tradition of billionaires’ taking control of influential media platforms, including Jeff Bezos’ 2013 acquisition of the Washington Post.
Twitter said Musk secured $25.5 billion of debt and margin loan financing and is providing a $21 billion equity commitment. Musk, who is worth $268 billion according to Forbes, has said he is not primarily concerned with the economics of Twitter.
“Having a public platform that is maximally trusted and broadly inclusive is extremely important to the future of civilization. I don’t care about the economics at all,” Elon said in a recent public talk.
Elon Musk is the Chief Executive of both electric car maker Tesla Inc and aerospace company, SpaceX, and some concerns have been raised as to how much time he will devote to Twitter or what he will do.
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