{"id":46412,"date":"2022-07-30T20:24:40","date_gmt":"2022-07-30T20:24:40","guid":{"rendered":"https:\/\/zeru.com\/blog\/?p=46412"},"modified":"2022-07-30T20:24:41","modified_gmt":"2022-07-30T20:24:41","slug":"how-elon-musk-bought-twitter","status":"publish","type":"post","link":"https:\/\/zeru.com\/blog\/how-elon-musk-bought-twitter","title":{"rendered":"How Elon Musk Bought Twitter"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_43 counter-flat ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a317ca6a7965\" class=\"cssicon\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><label for=\"ez-toc-cssicon-toggle-item-6a317ca6a7965\"  class=\"cssiconcheckbox\">1<\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a317ca6a7965\" ><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zeru.com\/blog\/how-elon-musk-bought-twitter\/#How_Elon_Musk_Bought_Twitter\" title=\"How Elon Musk Bought Twitter\">How Elon Musk Bought Twitter<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zeru.com\/blog\/how-elon-musk-bought-twitter\/#elon_musks_initial_offer_for_twitter\" title=\"elon musk&#8217;s initial offer for twitter\">elon musk&#8217;s initial offer for twitter<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zeru.com\/blog\/how-elon-musk-bought-twitter\/#elon_musks_debt_financing\" title=\"elon musk&#8217;s debt financing\">elon musk&#8217;s debt financing<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zeru.com\/blog\/how-elon-musk-bought-twitter\/#elon_musks_concern_about_algorithm\" title=\"elon musk&#8217;s concern about algorithm\">elon musk&#8217;s concern about algorithm<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"How_Elon_Musk_Bought_Twitter\"><\/span>How Elon Musk Bought Twitter<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p> <img decoding=\"async\" src=\"https:\/\/i.imgur.com\/yUp54ak.jpg\" alt=\"how elon musk bought twitter\" style=\"max-height:243px; margin:0px 10px; max-width:40% height:auto; width:auto;\" align=\"left\"> <\/p>\n<p>If you&#8217;re wondering how Elon Musk bought Twitter, you&#8217;re not alone. The acquisition has been a hot topic since Musk first made an offer. We&#8217;ve heard everything from Musk&#8217;s debt financing to his concerns over Twitter&#8217;s algorithm. Read on to learn about the latest developments. Here&#8217;s a look at the deal&#8217;s key points. Listed below are the most important points that you should be aware of.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"elon_musks_initial_offer_for_twitter\"><\/span>elon musk&#8217;s initial offer for twitter<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If Elon Musk&#8217;s initial bid for Twitter is anything to go by, he&#8217;s going to have to juggle a lot of financial variables. The tech billionaire is worth $220 billion and has committed to equity financing and secured $25.5 billion in debt financing to acquire the company. But does that mean he&#8217;ll take a hefty pay cut? Or is he going to attempt something more impactful?<\/p>\n<p>Musk is not the only investor in Twitter. He&#8217;s already invested in the company through a private investment. He also planned to use his board seat to exert influence over Twitter&#8217;s operations. But he later backed out of that plan and instead proposed buying the company outright. That&#8217;s how Twitter came to a decision that has already polarized the company&#8217;s shareholders. As it turns out, the plan didn&#8217;t work out so well.<\/p>\n<p>The board of directors of Twitter met Sunday to discuss Musk&#8217;s offer and entered negotiations with him on Monday. The two sides worked out the terms of the deal, including the date at which the deal will close and financial protections. But the deal is far from final, and the board and Musk still have a lot to work out. The next step is to negotiate financing and take the deal private. Musk&#8217;s initial offer could be revealed as early as Monday morning.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"elon_musks_debt_financing\"><\/span>elon musk&#8217;s debt financing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the case of Musk and Twitter&#8217;s deal, the bank is required to provide debt financing if the company completes its project. Twitter could sue Musk if the loan does not close on time, but there is no guarantee the bank will do so. Twitter could also bring suit to force Musk to close the deal and pay its old shareholders. If Twitter is successful in court, it could appoint a special representative to sue the banks.<\/p>\n<p>If Musk succeeds in getting a full financing deal, he will likely have to raise more than $44 billion from equity co-investors. That&#8217;s why he is considering different debt packages. One such party is Apollo Global Management. Despite the size of the company&#8217;s equity requirements, the company would receive a fixed dividend from Twitter and the preferred equity would appreciate in value. In this way, Twitter would receive a large chunk of cash while also avoiding the risk of losing all its equity.<\/p>\n<p>However, Musk is not satisfied with the current deal. He has also talked about decentralizing Twitter and eliminating the need for Twitter&#8217;s staff to regulate content. He has also mentioned banning advertising on the site and allowing users to pay with cryptocurrency. Twitter has been under fire recently due to toxic content and misinformation. Elon Musk wants to reverse the ban on the social network, which was imposed after his supporters stormed the Capitol on January 6 last year.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"elon_musks_concern_about_algorithm\"><\/span>elon musk&#8217;s concern about algorithm<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Elon Musk, CEO of Tesla and SpaceX, has spoken out about Twitter&#8217;s algorithm and asked users to switch back to the chronological feed. Musk&#8217;s views on Twitter&#8217;s algorithms are complex, and his concerns are not limited to privacy and security. It could apply to Twitter&#8217;s central product or to its self-funded Bluesky project. But he has a point.<\/p>\n<p>One problem with free speech is that it&#8217;s impossible to moderate everything that appears on the Internet. In countries with strict laws, minimally moderated Twitter may spark a huge fight. In that case, Musk&#8217;s suggestion to follow country law is a welcome one. However, the algorithm may continue to region-lock content if Musk doesn&#8217;t approve. In addition to its algorithmic changes, Musk is open to any other regulations if this is necessary to maintain its free speech model.<\/p>\n<p>While Musk has not explained exactly what he wants to do, he has reportedly proposed a plan to open source Twitter&#8217;s algorithm. He said he would propose such a plan prior to his Twitter buyout bid and reiterated it the day of the deal. This means that anyone who wants to can study the company&#8217;s algorithms and try to develop competing ones. That&#8217;s certainly one way to get what you want, while also ensuring that your voice is heard.<\/p>\n<p> <iframe width=\"455\" frameborder=\"0\" src=\"https:\/\/www.youtube.com\/embed\/nwTg6LNWG0o\" allowfullscreen=\"true\" height=\"254\" style=\"margin:0px auto; display: block;\"><\/iframe><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How Elon Musk Bought Twitter If you&#8217;re wondering how Elon Musk bought Twitter, you&#8217;re not alone. The acquisition has been a hot topic since Musk first made an offer. We&#8217;ve heard everything from Musk&#8217;s debt financing to his concerns over Twitter&#8217;s algorithm. Read on to learn about the latest developments. Here&#8217;s a look at the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50321,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.7 (Yoast SEO v21.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Elon Musk Bought Twitter - Zeru<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/zeru.com\/blog\/how-elon-musk-bought-twitter\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Elon Musk Bought Twitter\" \/>\n<meta property=\"og:description\" content=\"How Elon Musk Bought Twitter If you&#8217;re wondering how Elon Musk bought Twitter, you&#8217;re not alone. 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