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London Tech Week

Elon Musk buys off Twitter for $44B: Now what?

Elon Musk
Image credits: Elon Musk

It’s official – Elon Musk is set to buy Twitter for a whopping $44B!

Elon Musk, who is known for his larger-than-life thinking and crazy idea executions, has attracted a fair share of attention and scrutiny over time. Recently, his name has been tagged alongside microblogging site Twitter as he made a shocking bid to acquire the platform less than two weeks ago. 

Deal details

After a series of events, Twitter finalised and accepted the deal worth $44B on Monday (April 25th). 

Under the terms of the agreement, Twitter stockholders will receive $54.20 in cash for each share of Twitter common stock that they own upon closing the proposed transaction. 

The purchase price represents a 38% premium to Twitter’s closing stock price on April 1st, 2022, which was the last trading day before Musk disclosed his approximately 9% stake in Twitter.

This acquisition will give the world’s richest man control over the microblogging site, where he enjoys massive attention. As a part of the deal, Elon Musk is set to take Twitter as a privately-held company. 

Bret Taylor, Twitter’s Independent Board Chair, says, “The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing. The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.”

Post the deal, Musk, who has 84.6M followers at present, posted a tweet saying, “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated. I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spambots, and authenticating all humans.” 

Further, he also tweeted “I hope that even my worst critics remain on Twitter because that is what free speech means.”

Parag Agarwal, who recently took the helm as CEO, tweeted, “Twitter has a purpose and relevance that impacts the entire world. Deeply proud of our teams and inspired by the work that has never been more important.”

Jack Dorsey, who stepped down as CEO a few months back has tweeted his approval of Musk’s acquisition. 

He also said, “I’m so happy Twitter will continue to serve the public conversation. Around the world, and into the stars!”

The transaction, which has been unanimously approved by the Twitter Board of Directors, is expected to close in 2022, subject to the approval of Twitter stockholders. Twitter shares rose 5% higher on Monday after the deal was announced.

Crypto scenes

In another instance, meme coin Dogecoin surged almost 30% after the Twitter deal got finalised. Elon Musk is known for supporting dogecoin, and in fact, he invested in it along with Ether and Bitcoin last year.

Moreover, Musk said that he will launch “DOGE-1 Mission to Moon” in Q1, 2022. As a part of the mission, the company has partnered with Canada’s Geometric Energy Corporation to develop the satellite, and it will be flown onboard a Falcon 9 rocket. However, there is no information about it yet.

Besides Dogecoin, a cryptocurrency token “ELON BUYS TWITTER,” which is trading on decentralised exchanges, spiked over 10,500% in the last 24 hours after the news of the Twitter takeover.

According to CoinMarketCap, ELON BUYS TWITTER token reached $0.000009443 and was up 10,524% up, at its peak in the last 24 hours.

A tweet in 2017

In the light of the recent acquisition, Musk’s tweet from 2017 is doing rounds on the Internet. Five years back, Dave Smith, Editor of Business Insider, suggested Musk buy Twitter in response to his initial tweet saying “I love Twitter.” Musk replied asking, “How much is it?”

Now what?

As a part of the deal, Twitter’s shares will be delisted and it will be taken private. According to Musk, this will give him the freedom to make the changes he wants to the business. Further, he also plans to introduce features like a long posting and the ability to edit them after publishing them.

According to The Wall Street Journal, Twitter employees reacted to Musk’s acquisition with a mixed reaction of humor, fear, and enthusiasm.  

Edward Perez, a director of product management for Twitter’s societal health team, says, “It’s a time of genuine discomfort & uncertainty.”

Twitter has also prided itself on relaxed work culture fostering open conversation and creating a safe space for dialogue in its office. However, this could change post the acquisition, reports Fortune. Blind, an anonymous community app for the workplace, rates Twitter’s work-life balance 4.4 out of 5.

On the contrary, Musk’s Tesla and Space X are known for demanding work cultures. In an interview with The Wall Street Journal, Musk has characterised himself as a nano manager describing himself as more detail-oriented and controlling than a micromanager. 

So, what you guys think about the acquisition? Do let us know in the comment section below.

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