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Why Elon Musk Buys Twitter
The question now remains, why does Elon Musk want to buy Twitter? And, in the end, is it in the best interests of the company’s shareholders? This article will address the motivation for Musk’s purchase, why he pledged $21 billion to buy Twitter, and what he could do to back out of the deal if he wants to. Then, we’ll look at Twitter’s potential future and what it can expect from the acquisition.
Elon Musk’s desire to make twitter a bastion of freedom of expression
Tesla chief executive Elon Musk is making a bid to buy Twitter in order to increase freedom of speech on the social media network. Twitter has over two hundred million daily users and has become an influential platform, used by many influential people. To see also : How to Follow a Hashtag on Twitter. Musk sees Twitter as a “digital town square” where everyone can freely express themselves. His bid to make Twitter more tolerant of free speech will increase transparency by opening up the company’s algorithms and raising the bar for removal of offending tweets.
Twitter’s current business model cannot meet Musk’s societal imperative of being a bastion of free speech. While tweeting Nazi symbols or “war” about Putin is legal in most countries, it’s not legal to do so in Russia. Still, Twitter has pledged to remain open in Russia. Some people worry that this move will lead to a resurgence of hate speech, misinformation and incendiary statements.
Elon Musk’s bid to buy Twitter is highly unlikely to get the company out of trouble, and it will likely go to the courts. While he made a bid to buy Twitter to save free speech on the social network, he has yet to define the term “free speech.” But one thing is certain: Musk wants to have his piece of the pie – and the rest of Twitter. In an open society, free speech is essential for the freedom of expression and is a cornerstone of a democratic society. However, Musk’s bid to buy Twitter is a clear sign of intent to control the social and political discourse on Twitter.
Musk’s pledge of $21 billion in cash
The government has rarely intervened in a business deal, but in some cases it has, such as when a company buys its competitor. Twitter is not a competitor of Tesla, which Musk owns and operates, and the government could challenge the deal if it benefits the purchaser more than the seller. However, since Musk has not linked his two companies, the government has not taken any action yet. See the article : How to Know If Someone Blocked You on Twitter. Meanwhile, the Justice Department and F.T.C. did not respond to requests for comment.
A senior lecturer at the Said Business School at the University of Oxford, Tim Galpin, doubts the validity of Elon Musk’s claim that he will put up $21 billion in cash to purchase Twitter. Galpin says the relationship between the two companies is tenuous and depends on Musk’s ability to pay interest on his personal loan. It is also unclear whether Musk intends to spend the money he receives from Twitter on his own venture.
While Musk has already pledged half his Tesla stock to buy Twitter, he may have to pledge an additional 40 percent. That would leave Musk with about $25 billion in Tesla stock. And if he financed the purchase of Twitter with borrowed money, he could borrow another $21 billion or more against the 88 million Tesla shares. After all, he would have pledged a third of his Tesla stake.
Musk’s right to walk away from deal
If Twitter decides to reject Musk’s offer for Tesla, it may be able to force the two companies to settle their disagreements. Musk has repeatedly stated that he is willing to walk away from the deal and avoid paying the $1 billion breakup fee. See the article : How to Create a Thread on Twitter. Moreover, Twitter has every incentive to force Musk to close the deal. If this doesn’t work out, Musk may consider suing Twitter to get the $1 billion breakup fee.
Elon Musk’s lawyers have filed a lawsuit claiming Twitter breached his rights in the $44 billion deal. They said that Twitter refused to give Musk information about fake and spam accounts and acted in an “actively resisted” way of complying with his requests. According to the lawyers, Twitter’s actions violated Musk’s rights under the deal, and he’s therefore free to walk away.
It’s hard to see how a board would be able to allow a CEO to walk away from a business he has invested his time in. Twitter’s board, however, has said it will take legal action to enforcing the deal and get back his $1 billion breakup fee. Such a legal battle could last months. Moreover, Twitter has already faced multiple management changes and low morale, which may complicate its legal battle with Musk.
