Elon Musk Buys Twitter At $44bn But The World Isn’t Happy
Elon Musk finally sealed the Twitter deal at $44bn to get control of the social network with more than 200 million users and growing. Tesla chief who has a frequent critic of Twitter in the past said that the platform had not lived up to its potential as a platform for “free speech”.
How The Twitter Deal Finalized?
On 4 April, Elon Musk emerged as the single largest shareholder of the social media group. On 14 April, he offered to buy all Twitter shares for $54.20 each in a takeover bid. But the Twitter board opposed the attempt by making it expensive for Elon Musk. But the initial transaction faded after shareholders warmed to Musk’s offer of putting $21bn of his own money and taking rest of the amount as loan from financial institutions including Morgan Stanley. Twitter confirmed the sale and said that it would be closed in 2022.
History Of Twitter
Launched in 2006, Twitter boasts of 217 million daily active users and a market cap of nearly $40bn. But its co-founder Jack Dorsey stepped down as CEO in November 2021. He made the chief technology officer Parag Agrawal as an acting executive. Elon Musk started tweeting about his interest in buying the company as early as 2017. With 83m followers, he is a prominent user of the app.
How Elon Musk Want To Reshape Twitter?
Soon after finalizing the deal, Elon Musk announced his objective of buying Twitter. He said that he wanted to improve its functions by adding new features to it. He would make the algorithms open source to build trust, beat the spam bots, and authenticate all humans.
What The Government Has To Say About The Deal?
The White House spokeswoman Jen Psaki commented on deal that the President had long been concerned about the power of large social media platforms. But Senator Elizabeth Warren called the deal dangerous for their democracy by saying that billionaires had a different set of rules than everyone else. Rebecca Allensworth, professor of law at Vanderbilt University called the deal troublesome due to the amount of power it gave to Elon Musk.