The future of Twitter after the historic “touch” of Elon Musk?

Elon Musk raised $21 billion to buy Twitter from where?

Mysterious, different… still the way The richest billionaire on the planet Elon Musk demonstrated so far. Even as the Twitter acquisition is nearing completion, many questions remain about the truth behind the acquisition.

There have been a few reasons given for this hit deal such as wanting to privatize it, wanting Twitter to be a free speech playground. The real reason is probably only this billionaire knows. And investors have their opinion.

To have enough money to buy Twitter, Elon Musk persuaded banks including Morgan Stanley to lend more than 25 billion USD. He will have to “turn around” on his own over the remaining $21 billion. This number will be very small when it is 1/12 of the amount of assets he owns. However, he only has about $3 billion in cash and cash equivalents, according to Bloomberg estimates. So how is it possible to raise these $21 billion?

The first and fastest way is because most of Elon Musk’s assets are tied to Tesla shares, so selling off Tesla shares is inevitable.

The second way is that Mr. Musk can call for new investors or existing Twitter shareholders to contribute capital.

The third way mentioned, although the results are not too great, is that this billionaire will sell off his digital currency holdings such as Bitcoin, Ethereum and Dogecoin. Dogecoin rose about 30% after Musk and Twitter announced a buyback agreement.

Billionaire Elon Musk. (Image: Getty Images)

What would happen if Elon Musk gave up the acquisition of Twitter?

Elon Musk has repeatedly lied. The current successes that Musk have all come from the companies he founded, not acquired.

Four years ago, this billionaire also pledged to open a peanut candy company to compete with See’s Candies – the confectionery company of billionaire Warren Buffett. However, Elon Musk later changed his mind and the company was never founded.

From that example, Reuters said it is entirely possible that Elon Musk will unilaterally terminate this $ 44 billion acquisition of Twitter.

According to a filing by the US Securities and Exchange Commission (SEC), in the event that Twitter does not buy back for $44 billion as agreed, billionaire Elon Musk will have to pay Twitter $ 1 billion in contract termination fees. copper.

However, this amount is said to be not enough to prevent the US billionaire from changing his mind. The reason is because, if the deal is canceled, the value of Tesla’s shares is forecasted to rebound sharply, helping billionaire Elon Musk to be able to pay the contract termination fee.

Investors holding Tesla stock are probably the ones hoping for a “turn around”, because since Elon Musk revealed his holdings of Twitter shares, Tesla’s market capitalization value. fell by more than $275 billion, or 23% of its value. Concerns grew, after the billionaire sold off 4.4 million Tesla shares, raking in more than $4 billion in recent trading sessions – a move believed to be to prepare for the purchase. back to Twitter.

This is a difficult period for investors who love Tesla, when billionaire Elon Musk can sell more shares. The Twitter acquisition deal is making many investors nervous.”

On the other hand, Twitter stock, which is recording positive developments, is forecast to face a great challenge if the deal is canceled, especially when Elon Musk wants to sell 9.1% of the shares. which he just owned.

“Without Elon Musk’s deal, Twitter’s stock would be significantly lower. Probably 30-40% below where it’s currently trading,” said Angelo Zino, a senior research analyst. , CFRA Research said.

According to the SEC, the acquisition of Twitter will have to be completed within the next 6 months. From now until then, it is not excluded that the market will continue to witness many unpredictable fluctuations related to this hit deal.

How Twitter will change under Elon Musk

Twitter acts as a major communication platform, including leaders, politicians … with about 400 million Tweets per day. If in the hands of Elon Musk – a new future for Twitter has been drawn.

When announcing his plan to buy Twitter, Elon Musk wrote in a filing with the US Securities and Exchange Commission that Twitter needs to be transformed into a private company in order to thrive and better serve the community. . This transformation gives Elon Musk full control and control of the way Twitter operates as he wants.

No longer a public company, Twitter is no longer required to file regular financial statements and is less subject to U.S. regulation.

Elon Musk has closed the deal to buy Twitter. (Image: Getty Images)

Twitter users currently have no way to edit Tweets other than deleting and retweeting. Earlier this month, right at the start of his Twitter acquisition, the US billionaire asked his more than 80 million followers if they wanted an edit button. 73.6% of the more than four million people chose “Yes”. A day later, the Twitter communications team confirmed that the company was adding the feature to the platform.

Observers also believe that when holding a large amount of user data in his hand, it is not excluded that billionaire Elon Musk will break the ban on cryptocurrency on Twitter’s system.

“Dogecoin is a child of Elon Musk and it is likely that he will introduce Dogecoin on Twitter as a currency. Twitter has hundreds of millions of users, if these people start using Dogecoin for any service. on Twitter, it could be a game changer, at least for Dogecoin,” said Gregori Volokine, president of Meeschaert Financial Services.

It is not yet clear if Elon Musk will make any changes to Twitter’s privacy policy. This is an area of ​​great interest because in fact, owning Twitter gives Elon Musk more control over sensitive user data than other companies he runs like Tesla and SpaceX.

Just before deciding to buy Twitter, billionaire Elon Musk said in a conference: “If the acquisition of Twitter is wrong it is 100% my fault. Hope it is not bad.”

However, even if he owns Twitter, Elon Musk continues to be monitored when posting status lines about Tesla on this social network according to the court’s decision.

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