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Here’s What Next For Twitter and Elon Musk
Elon Musk recently announced a $44 billion deal to acquire Twitter. It is the largest private company deal in at least two decades. With 217 million active users, Twitter has played a massive role in shaping world narratives. It has become a megaphone for political leaders, companies to fine-tune their images, and celebrities to make money. But what does the future hold for Twitter and Musk?
Elon Musk
After announcing his intention to purchase Twitter for $44 billion, Elon Musk has faced some backlash. The situation has turned into a “will they or won’t they?” game. The future of Twitter is uncertain, but Musk’s influence on Twitter is real. As an avid tweeter, Musk communicates with random people and shares information without a PR buffer. His Twitter presence has tangible effects on the performance of his businesses, including the stock prices. In fact, Musk’s tweets have influenced stock prices, and the SEC has already imposed stricter rules on tweets by public figures.
While the tweets about bots and fake accounts have been causing a stir, Twitter has worked to address the problem. Twitter has also provided over 49 terabytes of data, which they say demonstrates that it has done its job. Elon Musk’s public comments about Twitter have created more questions than answers. If the company refuses to disclose more information, it could end up losing the deal. However, the situation may not be that bad after all.
In the aftermath of Twitter’s recent meltdown, Elon Musk has promised to make its algorithms open source so that anyone can understand how they work. This would eliminate the mystery around how posts are served and promote businesses. While an open source system would be preferable to the current system of mysterious promotion, it is not without its flaws. A recent study found that only one in every four people who tweet about Twitter actually reads the code. Despite the shortcomings of open source, Elon Musk may still be able to influence the outcome of the Twitter takeover.
After Musk revealed his stake in Twitter in April, the stock price took a wild ride. It spiked 27% immediately after the news was made public and went up to $52 when the deal was announced. However, on Wednesday, it fell to $37. Both the SEC and Twitter declined to comment on the matter. However, a Musk representative did not return a message seeking comment. The SEC declined to comment on the deal.
Open-source algorithms
After purchasing Twitter in April 2022 for USD 44 billion, Elon Musk has proposed making Twitter’s algorithm open source. The move would allow anyone to make their own changes to the service, and it would also help users get more control of its algorithm. But this move may not be the best choice. Many conservatives argue that Twitter’s algorithm stifles their voices. A recent study shows that a free speech absolutist version of the Twitter algorithm could help increase conservative viewpoints.
Some critics have criticized Musk’s proposal, arguing that Twitter is too complicated to make the algorithm open-source. However, the company has a strong incentive to keep spammers in check. Musk could err by blocking non-malicious automated account activity or by locking down the Twitter API to prevent spammers from exploiting it. In addition, there is a risk that he could accidentally demote the content of humans that behave like bots.
Shareholder vote
The next Twitter shareholder vote is expected in early August. Musk is the largest shareholder, and his takeover is expected to generate a lot of buzz. The board of directors unanimously recommends that shareholders vote for the deal, and there have been several shareholder proposals referencing Musk. The New York State Common Retirement Fund’s proposal, for instance, called for a report of Twitter’s political contributions. That proposal was also passed, but Musk’s involvement in the campaign will be a big factor in the final vote.
Two proposals, supported by conservative groups, failed to pass. The proposals called for an audit of Twitter’s civil rights and non-discrimination policies, as well as a disclosure of the company’s lobbying activities. The proposals also highlighted the existential tension among Twitter’s users and employees. Conservative groups accused Twitter of being too liberal in politics, as well as of bias against conservatives. The proposals demanded detailed disclosures of Musk’s lobbying activities.
Possible sale
The sale of Twitter by Elon Musk may be inevitable, and the company’s board is in the process of assessing it. They have deliberated on valuation, certainty, and financing. In the end, the board believes that Musk’s proposed transaction is the best option for stockholders. Although the timing of the deal is uncertain, the board believes that a sale by Elon Musk will provide significant value for Twitter stockholders.
It is difficult to know what will happen with the Twitter deal, particularly since Musk is a notoriously unpredictable dealmaker. Nevertheless, it’s safe to say that a deal between Twitter and Musk could end in a reversal. While the company’s market valuation has dropped dramatically since Musk’s agreement to buy Twitter, Snap’s stock is down more than 50% since the announcement.
