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Who is Buying Twitter?
Who is buying Twitter? Initially, it was Elon Musk, who backed the startup with his Tesla stock. But he’s since changed his plan to include more investors, though he hasn’t disclosed who they are. Other investors include Silver Lake, Alphabet, and Y Combinator. What do these investors have in common? We’ll answer that question in a moment. But first, let’s understand how the funding works.
Elon Musk
The news that Elon Musk is buying Twitter is a big deal. Despite the huge potential for the company, this deal could be a disaster for the company. Musk’s company has a steep uphill battle ahead. Read also : How to Search Twitter. Twitter already faces many challenges, including a high employee turnover rate, advertising headwinds, and credibility issues with bots and fake accounts. The company is now laying the groundwork to either renegotiate the deal or pull out completely.
As a result, it’s not surprising that the company’s stock has dropped over 50% over the past few months. But this move will be particularly difficult for Twitter’s stock price. Aside from the potential ramifications of a merger, Twitter’s IPO could be a nightmare for the stock. And as a public company, Twitter would need a huge influx of cash in order to survive.
Silver Lake
Twitter is on the brink of a massive buyout, thanks to an investment from Silver Lake Management. The tech-oriented hedge fund is investing $1 billion in the social media company and plans to work with Elliott Management Corp. to use the money to fund a $2 billion share repurchase program. To see also : What Will Musk Do With Twitter?. Elliott, which owns 4% of Twitter, is also an investor. The acquisition comes as Twitter is in a fraught relationship with Tesla, which Elliott is trying to buy.
Elliott, who started Elliott, has a stake in Twitter and has been pressuring the company to oust Dorsey as CEO. Elliott is a big donor to Trump and Republicans and may try to move the company in a political direction. The company’s current independent director, Patrick Pichette, will take a chairmanship of the search committee for a new director. Elliott has expressed interest in buying Twitter but hasn’t given much information on his plans.
Y Combinator
While Y Combinator is known for their stellar startups, the YC wing is now buying Twitter to build their own. One recent YC grad, Lauren Kay, was co-founder of dating startup Dating Ring. In a recent interview, she talked about her failure to launch the dating app. On the same subject : Why Would You Want to Add Someone to a Twitter List in Hootsuite?. She was so short on money that she eventually had to close the business, leaving her with nothing. But this time, the YC wing has the answer.
In order to close the deal, Musk must perform his contractual obligations. Twitter can compel him to do so, if he is not. Otherwise, the company can extract $1 billion in penalty and not complete the acquisition. Twitter also has the right to publicly announce the deal terms. In the meantime, the founders must maintain their own modest activity. If they can survive, they may be able to grab significant market share.
Alphabet
The rumor that Alphabet is buying Twitter was first circulating several years ago and became fact after it was announced. The company is now worth nearly $29 billion. There was much confusion as to why Alphabet was interested in purchasing the company. Facebook recently bought Oculus and Google has been pursuing Twitter for years. But now that Twitter is being acquired by Alphabet, is it a good idea? Let’s take a look.
Buying Twitter may be the answer to the company’s recent woes. Twitter’s stock has plummeted 30 percent over the past three months, despite its rapid growth. The company recently announced it had removed fake accounts, which caused its user count to drop. It’s still up more than 20% year-to-date, but the stock price is much cheaper now than in June. The acquisition could also give Alphabet a larger piece of the mobile payments pie. It already owns Google Pay and money-sharing app Cash. Putting those two together could make Alphabet a more formidable competitor.
Microsoft
While Microsoft may have made headlines this year when it bought LinkedIn, this is another example of the company being shrewd with giant acquisitions. The tech giant already broke the bank on an unprofitable social network, but the company has yet to hit a home run with another social or communication acquisition. Twitter, after all, isn’t just another Twitter. It’s a completely different beast. And while it’s a good thing Twitter is open source and decentralized, it needs a protector. That entity is Microsoft.
While this may sound like a perfect fit, there are still a lot of questions. The deal itself is fraught with risks, and it’s likely that Twitter will be significantly changed after the deal is closed. First of all, who will decide which features will survive the changes? What type of technology will the new owner implement? Will they use Twitter’s data to improve its service? Or will they allow people to opt-in and out of tweets?
Amazon
If you have been following the news about the acquisition of Twitter, you’ve probably noticed that Jeff Bezos has been tweeting about it. Currently, he owns the Washington Post. In addition to that, Salesforce CEO Marc Benioff bought Time Magazine last year. Twitter has become a social media hub where millions of people interact and share content. As such, it is under close regulatory scrutiny. Bezos’s recent tweets about Twitter’s potential acquisition have caused some concern.
Many observers have questioned whether Amazon’s acquisition of Twitter makes any sense. While Bezos has praised the company for its efforts in social media, Musk has criticized the decision. While he’s right to be cautious, he has also pointed out that the deal is primarily about video content that wouldn’t find a home anywhere else. In short, a large company would protect Twitter from the pressures of being a public company. And Amazon’s acquisition could bring in a new era of growth for the company.
