Elon Musk became Twitter’s biggest shareholder on March 14 after purchasing 9.1% of the company’s value for $2.64 billion. Musk initiated an unrequested and non-binding bid to buy Twitter for $43 billion, or $54 per share, and turn it private on April 4. Twitter’s capital encountered its most considerable daily trading massive increase since the corporation’s IPO in 2013, booming as much as 27 percent.
Elon Musk’s fortune is guesstimated to be $251 billion with Tesla and SpaceX accounting for a large percentage of his fortune. The former alone adds $68 billion to Musk’s net worth. The Securities and Exchange Commission announced a $1 billion breakup fee that applies both ways, with the fee variability depending on whether or not the deal closes.
Twitter’s board has unanimously approved the deal, and shareholders will vote on whether to accept it. The transaction expectation is to take three to six months to finalize. They informed employees their share options would be converted to cash when the deal with Mr. Musk came to an end. They would also continue to receive their current compensation packages for a year after finalizing the agreement. Currently, there are no specific plans for cutbacks.
Musk was welcome by Twitter’s board members, which would have prevented Musk from possessing more than a 14.9% stake in the company. However, on April 14, Twitter’s board of directors released a plan that would allow shareholders to buy more shares in a hostile takeover. The deadline for all parties to sign is set for April 14, 2023.
Chitter Over Twitter Changing
Twitter has set a revenue target of $7.5 billion and a user base of 315 million by 2023. In the fourth quarter of 2021, the company reported 217 million users who saw advertisements. Musk is an enthusiastic Twitterer and one of its most prominent critics.
Twitter has become a point of conflict in the debate over the limits of free expression on private channels. The company has prohibited several users from inciting violence. However, private firms can make regulations about what is and what isn’t allowed on their forums.
Musk has proposed that Twitter combat virtual currency scams. He intends to open source Twitter’s algorithm for listing tweets in terms of transparency and eliminate spambots. He also aims to turn Twitter’s San Francisco headquarters into a homeless shelter. And if it’s an indication, he has mentioned that he lacks confidence in Twitter’s administration.
Photo by Jeremy Bezanger