Elon Musk, who made the surprise bid less than two weeks ago, said that he would unleash Twitter’s “tremendous potential.” He also urged the company to make several reforms, ranging from loosening its content limits to deleting fake accounts.
The company initially rejected Musk’s bid but now seeks approval from shareholders.
The decision comes as Twitter has been under increasing pressure from lawmakers and authorities about the information on the platform. It has come up against criticism from the two sides of the political aisle due to its attempts to moderate disinformation on its platform.
The news of the takeover has pleased the right in the U.S., although Trump said that he had no intention of rejoining Twitter. Although the White House refused to comment on the takeover, spokesman Jen Psaki told reporters that regardless of who owns or manages Twitter, the president has consistently expressed worry about the influence of huge social media platforms.
Julian Knight, head of the U.K.’s Digital, Culture, Media, and Sport Committee, described the purchase as a fantastic development in social media on Twitter.
“It will be interesting to see how a privately owned Twitter (run by a man who is an absolutist over free speech) will react to global moves to regulate.”
What is Elon Musk’s Twitter track record?
Elon Musk is a prominent Twitter’s user. Photograph: Rafael Henrique/Sopa Images/Rex/Shutterstock
Musk, with more than 80 million Twitter followers, has a contentious past on the platform.
In 2018, U.S. financial authorities accused him of deceiving Tesla investors via his tweets, allegations that were settled for $40 billion.
And in 2019, he faced a defamation action – which he won – for referring to a diver engaged in saving schoolboys in Thailand on the platform as a “pedo guy.”
The Tesla and SpaceX CEO also has a history of clashing with journalists and blocking critics. He hinted on Monday that he regarded Twitter as a place for debate.
“I hope that even my worst critics remain on Twitter because that is what free speech means,” he tweeted just hours before the deal was disclosed.
Can Musk resurrect Twitter?
As part of the takeover, which is scheduled to conclude later this year, Twitter’s shares will be delisted, and the firm will be taken private. Musk has said that this will provide him with the flexibility to make changes to the firm that he desires.
Among other things, he’s recommended expanding the length of postings and adding the opportunity to amend them once they’re published.
Twitter shares closed more than 5% higher on Monday on the announcement of the deal. However, the price stayed below Musk’s offer of $54.20 per share. He said he was unconcerned about the economics of the purchase. He will, however, take on a corporation with a chequered financial history.
Twitter’s board chair, Bret Taylor, said that the company had thoroughly evaluated Musk’s offer and determined it was the best way ahead for Twitter’s investors.
It is unknown who will head the firm in the future. Twitter is presently run by Parag Agrawal, who seized the helm last November from co-founder and previous CEO Jack Dorsey.
However, Musk said to Twitter’s board of directors, “I don’t have confidence in management.”
Agrawal informed Twitter staff on Monday that the company’s future is unclear.
“Once the deal closes, we don’t know which direction the platform will go,” he said, according to the Reuters news agency.
How did the deal come to be?
Musk’s targeting at Twitter has advanced at a breakneck pace. In early April, he became the firm’s top stakeholder, with a 9.2% stake.
Twitter’s stock market value has lagged rivals. Source: Refinitiv Datastream
He was subsequently asked to join Twitter’s board of directors. Still, he declined the offer before making a shock bid for the firm on 14 April, claiming he intended to “unlock” the company’s potential as a stronghold of speech freedom.
Twitter attempted to thwart his bid by threatening to dilute the shares of anybody with more than a 15% stake in the company. Its attitude, however, evolved when Musk released further financial data about his offer.
Musk has acquired $25.5 billion in finance for the deal and will own a $21 billion stake in the firm.
The board of directors unanimously authorised the deal, which will now be put to a vote among shareholders.
Elon Musk: the new king of Twitter
Elon Musk has emerged as the undisputed king of Twitter. He has said it’s not about “economics” but power and influence and that by taking the firm private, he would have complete control over Twitter. He would be free to do as he pleased with the company. He would also make Twitter’s algorithm public for users to understand better how the platform works.
The decision leaves the door open for Donald Trump to return to the platform; however, he seems to prefer his own social media network Truth Social for the time being.
Conservatives have complained for years that Twitter is against them – and the news has thrilled Republicans in the U.S. Others have expressed concern about what Twitter would look like in the absence of robust platform control.
Twitter now confronts the threat that unrestricted free speech on social media can devolve into something very unpleasant, very rapidly.