Elon Musk, Tesla's chief executive who became Twitter's majority shareholder last week, officially announced his intention to buy Twitter. Elon Musk bought about 73.5 million shares of Twitter last month, or 9.2 percent, according to the US Stock Exchange. Elon Musk is a large individual shareholder, but has not yet been actively involved in management.
Elon Musk announced on the 14th local time that it will acquire 100% of Twitter's equity with $54.20 per share in cash. That's a total of $43 billion.
After Elon Musk put forward the conditions, Tesla and Twitter shares fell at the same time. Elon Musk's acquisition of Twitter is expected to adversely affect Tesla. Elon Musk is said to have no immediately available cash. He even commented on Twitter that "cash is scarce." Elon Musk is one of the world's top billionaires with a net worth of $219 billion, but he holds most of the stakes in Tesla and SpaceX. To raise cash to buy Twitter, he had to sell existing stocks, such as Tesla. The reason twitter shares fell was because people thought the probability of being acquired was low. Wall Street believes that if Elon Musk really wants to buy Twitter, he should offer a higher price than the offer.
Image note: Screenshot of Elon Musk's Tweet
What was the real intent behind Elon Musk's acquisition of Twitter? Ever since Elon Musk became Twitter's largest shareholder, he has been constantly critical of Twitter. He wrote on Twitter: "Do you think Twitter is upholding the great principles of free speech? He then tweeted: "Is there a need for a new social media platform? They also suggest an overhaul of Twitter's premium subscription service, Twitter Blue, or adding cryptocurrencies to payment options. The transformation of Twitter's headquarters in San Francisco into a shelter for the homeless has caused controversy.
Elon Musk is a Twitter star with more than 80 million followers. Grab attention by posting news or making unexpected announcements on Twitter. In 2018, he tweeted about Tesla's delisting, causing a stir. For now, he is also being scrutinized by in-house lawyers before posting on social media, including Twitter.
The background behind Elon Musk's acquisition of Twitter is simple, "freedom of speech." Twitter should be a forum for freedom of expression. It was also explained that it was an important platform for press freedom. Some say that keeping Twitter open source is important for the future of civilization. To that end, elon Musk is known to be considering delisting after taking over Twitter.
If Elon Musk takes over Twitter, it is expected to further enrich the infotainment functions of Tesla models and enrich the content ecology of the car's machine system.
However, many experts predict that this will not be easy, but if Elon Musk has a clear plan, then the possibility of acquiring Twitter is high. At the same time, it is well known that the US private equity firm Thomas Bravo is considering acquiring Twitter, and Elon Musk will not have a smooth ride in acquiring a successful Twitter.