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What Happens If Elon Musk Buys Twitter?
What happens if Elon Musk buys Twitter? Will Twitter be left as the stomping ground for conservatives? Is it possible that Musk will walk away? Or, will he try to impose his own political views on the social network? In this article, I will address those questions and speculate on what may happen to twitter. I’ll also discuss whether the deal will be good for its users or for its founders.
If Elon Musk buys Twitter
If Elon Musk buys Twitter, what happens to the company? This is the question that has captivated investors since Musk’s announcement that he is planning to purchase Twitter. Twitter is a company that has faced a number of challenges including a lack of cash flow and spam bots. Musk is determined to change these problems, and he has promised to do so in a private company. The Twitter board has approved Musk’s proposed deal, but he must get the approval of its shareholders and undergo regulatory review. The Twitter CEO Parag Agrawal said that the deal should close within three to six months. According to Bloomberg, if Musk is able to get the approval of shareholders, Twitter will be able to make changes to its platform quickly and easily.
In the SEC filing, Elon Musk proposes to buy Twitter. He says the purchase would make the company more open and politically neutral, and that he would let the former president Donald Trump back on Twitter. While his proposal has been controversial, critics are skeptical. The CEO says that he would protect the free speech of Twitter users. Musk’s proposal is unlikely to succeed, however. He must convince Twitter shareholders that he is a good fit for the company.
If he walks away from the deal
Should Twitter sue Elon Musk? The answer depends on how much Musk has to lose. The Twitter CEO has a net worth of $227.6 billion, which Forbes pegs at $24 billion after accounting for the $44 billion price tag for Twitter. Musk still might have a lot of cash on hand. In fact, most similar disputes have ended with a settlement.
In Musk’s lawsuit, he cites the failure of Twitter to turn over more data about bots. Twitter estimates that 5% of its daily users are bots, but cautions that this number could be higher. Musk claims that as many as 20% of accounts on the social network are fake, and that this number has grown exponentially since the company’s takeover in 2012. Twitter has said that its bot estimates are based on data from private sources, including IP addresses, phone numbers, and locations, and that verifying them is impossible.
If Musk does indeed walk away from the Twitter deal, the company could have to pay a $1 billion breakup fee and face a lawsuit. Musk’s lawyers wrote a letter to Twitter in June arguing that the breakup fee is excessive, but his argument could not stand up in court. The average breakup fee is 2.8% of the deal value. Reverse termination fees are as much as 6%. The Musk-Twitter reverse termination fee is therefore relatively small, but the company could still face a lawsuit if Musk walks away.
If he wants to impose his will on Twitter
Musk has already expressed his concerns about bots, but it is unclear why he would want to impose his will on Twitter. Musk claims that bots are a problem for most Twitter users, but Twitter claims that only five percent of its account’s activity is bot-controlled. Musk’s lawyers plan to use this claim in court. Should Twitter decide to sue Musk, he could be forced to pay a $1 billion fee.
While he is attempting to impose his will on Twitter, he does not have to buy every share. If Musk has enough shares to gain control, he could oust the directors and executives who disagree with him. But he is unsure whether he can get enough support to buy out all of the remaining Twitter shareholders. But even if Musk wins the proxy vote, he will still need the support of the Twitter board to complete the transaction. If he does, the deal is sealed.
If he wants to undermine twitter’s position as a haven for persecuted conservatives
If Elon Musk wants to undermine Twitter’s position as a safe haven for conservatives, he should look to the past. The company has been down this road before. Musk has criticized the company’s moderators for allowing Donald Trump to post content that incited violence. He also cited a tweet by a Saudi journalist who called for the death of an innocent Saudi man who said unflattering things about his government.
The Saudis have been investing in Twitter for years. Musk and Statistical were publicly butting heads about it. Statistical argued that Musk should not invest in Twitter. However, Musk did not stop there. After all, he had criticized the Saudis’ investment in Twitter, and had asked about how they would protect free speech.
