Twitter agrees to sell itself to Elon Musk for $44 billion
On April 25, Twitter announced that it would sell itself to Elon Musk. Under the deal, Musk will buy back Twitter for $54.2 per share, or $44 billion. Twitter will go private once the transaction is completed. The deal still needs shareholders and authorities to approve.
In the press release, Elon Musk asserted that free speech is the foundation of a democracy and Twitter is “a digital town square where issues important to the future of humanity are discussed”. He expressed his desire to make Twitter better than ever by upgrading products with new features, making the algorithm open source to increase trust, and fighting spam bots. “Twitter has tremendous potential, and I look forward to working with the company and its user community to unlock that potential,” he wrote.
The announcement ends a dramatic week between Musk and Twitter since the billionaire announced his intention to take over the social network. Twitter announced Musk would join the board, but a few days later Musk changed his mind. He then offered to buy the company, but Twitter refused. However, after consideration, the “blue bird” also accepted Musk.
Musk’s interest in Twitter is purely personal. He is a regular user of the platform, often sharing jokes, interacting with his 83.6 million followers and making business announcements. Because of this, he also got into some trouble.
In September 2018, the SEC accused Musk of making “false and misleading statements” to investors when he claimed he was considering making Tesla a private company and had secured enough funding. Musk and Tesla eventually had to settle with the government, paying a total of $ 40 million to the SEC, and Musk had to temporarily give up his position as Chairman.
In June 2020, the SEC accused Musk of violating several terms of the agreement, requiring some tweets to be pre-approved if they contained business information about Tesla that could affect the stock price. Musk tweeted that Tesla’s stock price was too high, causing the electric car company’s price to go down again.
Du Lam (According to CNBC)
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