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How Did Elon Musk Buy Twitter?
So, Elon Musk wants to buy Twitter. But the question is, how did he go about it? In this article, we’ll take a look at the timetable for this deal, what the deal entails, and how much it costs. It also addresses some of the issues with owning a company such as Twitter. Read on to find out. Originally, Elon Musk was one of the most popular tech investors and was the founder of Tesla. The company had a high market value.
Elon Musk’s bid to buy Twitter
In April, Elon Musk became Twitter’s largest shareholder by purchasing a 9% stake in the company. He subsequently declined an offer to be on the board of directors, but soon after made a takeover bid. Musk said he had all the financing arranged, but Twitter’s board adopted a so-called “poison pill” designed to thwart the takeover. The board gradually warmed to the takeover bid. The negotiations continued for several weeks, but failed to take off.
However, the bid to buy Twitter has hit the headlines again, with a legal document claiming that Musk broke corporate laws and used insider information. Regardless, the deal must be approved by the board and Musk must prove his funding. Twitter shares have fallen 39% in a year. The Justice Department has not responded to requests for comment. A spokesman for the company declined to comment. Elon Musk’s bid to buy Twitter has received widespread criticism, and the Justice Department is currently investigating the matter.
Timeline of the deal
In a timeline of events leading up to the Elon Musk and Twitter deal, the two companies make a number of significant decisions. Musk says he’ll reverse a ban on former President Donald Trump, and Twitter agrees to give him access to a “firehose” of data about public tweets. Twitter also announces a hiring freeze, and two top executives leave the company. The Washington Post reports that Musk’s team has concluded the spam and bot figures are not verifiable. Musk later cites a lack of proof for his statements, but says the deal remains on track.
Despite the deal’s many hurdles, Musk remains committed to the company, and plans to make further investments. Musk has already purchased 9.2 percent of Twitter stock through a passive investment of 73.5 million shares. The Tesla CEO also announces that he will join the Twitter board. In the meantime, Musk has suggested a ‘edit option’ through a poll. Twitter is working on implementing the feature, and it will be tested on Twitter Blue.
Problems with owning Twitter
Owning Twitter for Elon Musk presents many challenges. The social network is privately held, which means it is not subject to the same reporting and disclosure requirements as publicly traded companies. Furthermore, it does not have a board of directors elected by the company’s shareholders. A good example of a privately held company with a lack of transparency is the Mars family, which runs a popular candy bar company and sells cat food. Musk could make Twitter a less friendly place for its users.
The proposed purchase of Twitter raises concerns about freedom of speech. Musk himself has said that he would like to be influential over Twitter. Taking it private would give him more control over the company, which could benefit his other companies. But these concerns are outweighed by the potential benefits of owning Twitter. If the deal goes through, it could result in the censorship of users. In addition, Musk’s controversial views on political speech and content moderation have the potential to harm the free-speech rights of other users.
Cost of the deal
The cost of Elon Musk buying Twitter could reach $1 billion. But even if Musk is willing to drop his bid, Twitter can’t walk away without a $1 billion breakup fee. A Twitter executive said that the company’s board initially considered rejecting the offer, but changed its mind when Musk revealed the details of the financing arrangement. Twitter is also using a “poison pill” strategy, which allows it to accept competing offers.
The cost of Elon Musk buying Twitter is unclear at this point. While it’s difficult to estimate how much Musk paid for the acquisition, Musk is worth around $220 billion. The price of the transaction has been complicated by Musk’s financial juggling. While he has a high net worth, he couldn’t buy Twitter without selling Tesla stock. Besides the Tesla shares, Musk’s Twitter shareholders include Oracle CEO Larry Ellison and crypto exchange Binance.
