News about Twitter’s trending on its own platform after Elon Musk successfully buys it.
Elon Musk successfully purchased Twitter on Monday (April 25) for $44 billion – sending the social platform trending on its own website.
The social platform is abuzz with news of what possible choices could be in store for the popular social media site. Users are also curious about how this could change what content can be posted.
Meanwhile, Musk compares the social platform to being a “digital town square” and calls free speech the bedrock for any functional democracy.
Elon Musk to Make Twitter ‘Private’ to Protect Online Free Speech
The newest mission statement for the social platform encapsulated by his tweet, which currently has 2.4 million likes and has been retweeted over 300,000 times.
Key objectives, if we were to infer from the tweet, our two make the social engine’s algorithm is open source in order to boost transparency and trust, targeting spam bots so that they do not overtake the platform, and verifying every human user.
There is also speculation as to whether the social platform will welcome back currently banned controversial user President Donald Trump – this is yet to be seen. Although Trump says that he will not do this and will instead remain on the social platform that he recently made public.
Either way, Elon may be looking to add this to his list of success stories, which includes SpaceX, Tesla, and PayPal.
However, the moves to make Twitter private still needs to be approved by regulators, if successful shareholders will gain a 38% profit on the shares, from April 1.
Jack Dorsey Endorses Move
Founder of Twitter, Jack Dorsey, called Musk himself the “singular solution” that he could back and that he trusts.
Referring to Twitter as one of his biggest regrets, due to it being over influenced by Wall Street and the advertisement model, the founder called this privatisation “correct first step” – adding that the platform being a company is the first problem to be solved.
As for shareholders, Bret Taylor, who is Twitter’s independent board chair, calls the transaction something that will release a significant cash premium, which is the optimal way forward for Twitter’s current shareholders.
The Twitter chief went on to say that the social platform could serve best as a protocol-level service rather than working at the company level. And that this outcome could build maximal trust and inclusivity. However, Twitter’s current chief admits that there is a significant amount of uncertainty about the future for the service.
While its purpose has significance on a global level, the move will involve possible layoffs of current board members – the only thing that seems certain is that Elon intends to make the social platform focused on free speech.
Elon Paid a Whopping 53 Percent Premium Per Share
Elon’s final offer ended up as $54.20 per share or the exchange for his Monday bid, according to a press release for $44B.
Which went substantially over his previous “best and final” of $43 billion in order to purchase the social media giant and take it private. Indeed, Monday morning, Twitter had a valuation of $37 billion, which means his bid was a surprising 54% premium on that valuation.
The technological business owner and investor still believes that the social platform has “tremendous potential” which can be unlocked by working with the firm and Twitter users. The final decision to sell Twitter was reached through unanimous approval of the company’s board of directors.
The current CEO Parag Agrawal supported the deal – and Elon revealed that $25B of this final deal came from loans, with the rest ($22B) provisioned from his private equity.
Previous to this, it appeared that a “Poison Pill” strategy would be used by the board’s consortium of executives in order to thwart a purchase attempt. And there is as yet no official explanation for Twitter’s U-turn to sell its ownership.
As for future features, Elon has already hinted at one after first revealing a 9.2% stake in Twitter, as possibly adding an “edit” button – this feature was already in development. As well as eliminating Twitter Blue advertisements, cutting subscription costs, and even allowing DOGE payments.
Elon is already your figurehead for millennial’s and younger – with Tesla ranking among one of the most popular disruptive stocks that younger traders flock to. And hyper popular podcaster Joe Rogan publicly backing the move on a live stream.
Twitter was made public in 2013 after going through an IPO. After Elon purchased a 9.2% stake in the company, its share prices saw its highest share prices in almost a decade, rocketing up over 27%. It is still possible that the deal could collapse at the last minute. Tesla was not all involved in the deal, with Elon relying on his private equity and loans.
According to an anonymous source who spoke to The Indian Express, Twitter can still technically accept a second third-party offer, but they would have to pay Elon a breakup fee.