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Why Would Elon Musk Buy Twitter?
Elon Musk is the billionaire CEO of Tesla and SpaceX, two companies with billion-dollar valuations. Now he’s planning to buy a social media company. What’s his reasoning? There have been reports that Musk had run-ins with the S.E.C. – but that doesn’t necessarily mean he wants to sabotage Twitter. The answer to that question depends on the context of Musk’s bid for Twitter.
Elon Musk wants to sabotage Twitter
Twitter CEO Elliott Musk is reportedly upset over the way fake accounts are being handled and has publicly criticized the company. He has also tweeted about the fake accounts and asked users whether these claims are true. The interview with Palmer has resurfaced as a response to a report published by Wired that said the company is in turmoil after Musk dropped out of his deal to buy the company. Earlier this week, Insider reported that several employees are considering leaving the company because of the turbulence. Palmer believes Musk’s strategy all along was to sabotage Twitter from within. He claims that Musk has been dissing Twitter CEO Parag Agrawal with a poop emoji.
While Musk has repeatedly said that he does not want to restrict free speech, he has repeatedly called on Twitter to do the right thing. Despite Musk’s recent criticism of Twitter’s policies, Twitter users have already reacted negatively. Many employees have spoken out against him, and they feel compelled to lash out at him publicly. Some people have said that the acquisition of Twitter by Elon Musk could be dangerous to democracy.
Some Tesla employees wonder why Musk would want to attack the service. They believe that Musk is motivated by his strong ideological views, which are incompatible with those of mainstream media. Twitter has also been accused of targeting conservative voices disproportionately. This could allow Musk to shape the company’s platform to suit his own interests. If Musk is the sole owner of the company, he could push out those who disagree with him and mold it to his liking.
Elon Musk wants to make more money
Elon Musk’s acquisition of Twitter is creating quite a stir. The news that the Elon Musk is looking to purchase the social media site for $44 billion has been met with some dissent. The current state of Twitter is incompatible with free speech and cannot serve its purpose. Despite this, Musk is determined to make more money and he wants to do so through the purchase of Twitter. He has enlisted the services of Morgan Stanley to help him with the deal. While Musk has not publicly commented on the acquisition, he has said he would try to keep as many Twitter shareholders as possible.
The deal includes $1 billion in debt servicing costs each year. Musk has not revealed the number of jobs he plans to cut, but he did mention it in his pitch to banks, Bloomberg News reports. Despite this, sources suggest that the decisions about job cuts are unlikely to be made until later in the year. Musk has also reportedly formed three holding companies to support his Twitter acquisition. The names of the companies reflect Musk’s initial idea for the company. These companies could also work together to combine Tesla and other companies.
As far as the future of Twitter goes, this deal isn’t guaranteed to be successful. Musk’s previous deal with the SEC included a clause that would require Twitter to maintain a sitter until a better offer surfaces. Twitter’s board could also decide to reject the deal if a better one comes along. In this case, Musk would need to pay a $1 billion termination fee if he pulled out of the deal.
Elon Musk has run-ins with the S.E.C.
Tesla CEO Elon Musk has run-ins with regulators before. In a tweet in 2018, he falsely claimed Tesla had secured funding for a stock market exit. In response to the SEC’s investigation, Musk paid a fine of $20 million and agreed to step aside as chairman for three years. He has also been fined a separate $10 million. In light of these recent controversies, the SEC is once again making headlines.
Despite the SEC’s warning, Musk has repeatedly dissed the regulator. His latest infamy came on the heels of a recent tweet about potentially selling Tesla stock without pre-approval. Although Musk publicly denies the allegations, the tweets caused a panic in the market. The SEC ruled that Musk’s tweets were not credible. But the SEC may still investigate Musk, as he has a history of publically disliking the SEC.
Despite Musk’s success in running Tesla, SpaceX, Twitter, and Facebook, there are still ongoing legal proceedings with the SEC. Tesla recently hired David Misler, a former SEC trial attorney and a federal prosecutor in the SEC’s fraud division, to handle the matter. The SEC’s lawsuit alleges that Musk violated an agreement in a tweet about taking Tesla private. However, a federal judge rejected Musk’s Eminem-like arguments.
