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Why Does Elon Musk Buy Twitter Now?
Billionaire Elon Musk is the owner of Tesla cars and the aerospace company SpaceX. The billionaire wants to expand his business interests and has set his sights on buying the social media company. But why is he buying Twitter now? And is the deal worth the hype? We’ll discuss those reasons in this article. But what about the other rumors swirling around the billionaire’s intentions.
Elon Musk doesn’t like how Twitter is run
Elon Musk recently bought Twitter for $44 billion. In an interview with The Post, Musk denied that Trump was behind the purchase. He did, however, offer general hints that the company will change. Musk was responding to a story that said job interest at Twitter jumped by 250 percent after Musk purchased it. The story offers a respite from weeks of negative press regarding employees’ working conditions. The Washington Post described the acquisition as “a long-feared reality” for the employees.
Musk has been critical of Twitter in the past, and recently tweeted that the social media platform was “inappropriate” for suspending a news organization. This incorrectly referred to an action taken by Twitter during the 2020 presidential election. Musk has also vowed to eliminate bots and spam from the platform, so that it is free from hate speech. However, Musk did not address the suspension of Babylon Bee, which was shut down for posting hateful material.
He’s worried about financing deal
The latest twist in the Elon Musk-Twitter saga involves a new “poison pill”: the board has given certain shareholders the right to buy more Twitter stock, signaling that the board is preparing to fight Musk’s bid to purchase the company. While Musk has maintained that he is committed to buying Twitter, the company’s stock price has dropped 24% in the past month.
The rumor of Musk’s hostile takeover of Twitter was based on a number of factors. The board of Twitter initially considered rejecting Musk’s bid, but later took it more seriously when Musk provided details about the financing deal. The board adopted a “poison pill” strategy, which allowed it to accept competing offers. The new board of Twitter has not publicly disclosed its business plan for Twitter. But Musk has hinted that he plans to reverse Twitter’s moderation policies and provide additional transparency about its algorithms.
A longtime deals lawyer said that the current deal is not as favourable to the Tesla CEO as Musk had originally hoped. According to the SEC filing, Musk must pay a $1 billion break-up fee. If he refuses to pay the fee, Twitter can force him to complete the deal. The company has every incentive to force Musk to complete the deal, as he has a stake in both companies.
He wants more clarity on fake accounts
Elon Musk put his $44 billion Twitter deal on hold after a federal filing said he wanted more clarity about fake accounts. Twitter has repeatedly said that less than five percent of its users are fake accounts, but Elon Musk is looking for more details about the issue. Musk’s comments are not surprising given that he has over 90 million followers. However, the comments do seem to indicate that Musk is trying to lay the groundwork for a renegotiated deal.
The SEC and Twitter met on May 6 to talk about the issue of fake accounts, with Musk stating that “there should be greater clarity on this issue.” However, Musk’s tweets raised some questions about Twitter’s methodology, arguing that it is not “random” and uses a limited sample size, creating room for errors. As a result, he could abandon his Twitter acquisition. Meanwhile, he is concerned about the fake accounts that are undermining his company’s credibility and his business model.
He wants to get rid of employees working to help him close deal
Tesla CEO Elon Musk is threatening to fire employees working remotely from his company’s office, according to emails leaked by the electric vehicle news site Electrek. The reason for the layoffs was Musk’s desire to “slow down the hiring process and get the deal done” before the company’s $44 billion buyout. Musk has also urged Tesla employees to come back to the office for at least 40 hours a week.
Despite his threats of dumping employees working to close the deal, it’s unclear if Musk is serious about pulling out of the Facebook-Twitter deal. Twitter is preparing to fight Musk in court, and the company has not said whether or not it will drop the offer. Musk has previously said the deal is on hold until the company can show that its claims about bots are legitimate.
