Musk's $44 billion acquisition of Twitter, shares up nearly 6 percent

Business Crypto, April 26 (Shao Feng) -- Twitter said monday that it has agreed to sell itself to Elon Musk for about $44 billion, a deal that has the potential to expand the billionaire's business empire and put the world's richest man in charge of one of the world's most influential social networks.

The deal, which would take the company private, ended Tesla and SpaceX CEOs as one of Twitter's largest shareholders, was offered and turned down its board seats and bid for the company — all in less than a month.

Under the terms of the deal, shareholders will receive $54.20 in cash for each share of Twitter stock held by shareholders, matching Musk's original offer and representing a 38 percent premium to musk's share price the day before he revealed his stake in the company.

Musk said in a statement on Monday: "Freedom of speech is the cornerstone of the functioning of democracy, and Twitter is a digital town square where people discuss issues that are vital to the future of humanity." "Twitter has tremendous potential — I look forward to working with companies and user communities to unlock it."

The deal, which received unanimous approval from Twitter's board of directors, is expected to close this year. Earlier, Musk revealed last week that he was ready for $46.5 billion in financing to buy the company, a clear turning point that forced Twitter's board to seriously consider the deal. The board met Sunday to evaluate Musk's proposal.

Brett Taylor, chairman of Twitter's independent board, said in a statement: "Twitter's board of directors conducted a deliberate and comprehensive process to evaluate Elon's proposal, with a deliberate focus on value, certainty and financing. The deal was called "the best way forward for Twitter shareholders." "

After the deal was announced, Twitter shares rose nearly 6 percent, hovering around $51.84, slightly below the offer price. The deal is awaiting approval from shareholders and regulators. Twitter CEO Parag Agravar said he would hold a plenary meeting with Taylor on Monday afternoon to answer questions about the deal. "I know this is a big change, and you're probably dealing with what that means for you and Twitter in the future."

Twitter's value to Musk

Musk is both a high-profile Twitter user and a controversial user. He has more than 83 million followers on the platform, which he has used over the years, from sharing memes and discussing his company to insulting politicians, spreading misleading claims, and making offensive statements about the transgender community.

Musk has repeatedly stressed in recent days that his goal is to support free speech on the platform and work to "unlock" Twitter's "extraordinary potential."

Musk said in a statement monday that he wants to "make Twitter better than ever by enhancing the product with new features, making algorithms open source to increase trust, beating spam bots, and authenticating everyone." Separately, he said in a tweet on Monday that he wanted "even my worst critics to stay on Twitter because that's what free speech means." ”

Still, some industry experts worry that Musk's desire for free speech on Twitter could mean canceling some of the platform's work to curb hate speech, misinformation, harassment and other harmful content. Others have questioned whether Musk will reinstate former President Donald Trump's account, which was deleted early last year for violating Twitter's policy of opposing incitement to violence after a congressional riot. Such a move could have a significant impact on the upcoming 2024 U.S. presidential election.

Although Twitter is smaller than some of its social media competitors, it has a huge impact in the online and offline world because it is used by many politicians, public figures, and journalists, and sometimes serves as a model for other platforms in how to handle harmful content.

"Don't let Twitter become a petri dish of hate speech or lies that subvert our democracy," Derek Johnson, president of the NAACP, said in a statement to Musk on Monday.

A new era for Twitter?

In the days after Musk's first bid, many people who followed the company wondered if Twitter would try to find another buyer, especially after the company's poison pill measures made it harder for Musk to buy the company without its approval.

It's unclear whether Agrawal, who took over as CEO from founder Jack Dorsey in November, will continue to hold the top position after the acquisition. Musk has previously tweeted about Agravar comparing it to former Soviet leader Joseph Stalin. Musk also said in his offer letter to buy Twitter that he "has no confidence in management."

The deal could end Twitter's nearly decade of chaos as a public company, during which it rotated its role as CEO, battled aggressive investors, and worked to drive growth and successfully monetize its influential user base.

In a statement on Monday, Agrawal said that "Twitter's purpose and relevance affect the entire world," adding, "I'm deeply proud of our team and inspired by work that has never been so important." ”

Twitter employees are confused

In a plenary meeting with CEO Parag Agrwal and board chairman Bret Taylor on Monday afternoon, Twitter employees asked questions ranging from what the deal would mean for their pay to whether former U.S. President Donald Trump would be put back on the platform.

Agrawal, who has only been in charge of Twitter for four months, told employees not to expect big changes before the deal is completed, which will happen before the end of the year. He also said that "there are currently no layoff plans" and that Twitter's remote work policy will continue until the deal is completed.

In response to a question about whether Trump's account will be reinstated on the platform, Agravar told staff that they should ask Musk, saying, "Once the deal is completed, we'll know where the platform is headed."

Asked by an employee what Musk's acquisition means for Twitter's commitment to "responsible, ethical" AI and machine learning, he said, "We've always been seen as an industry leader in the space and have attracted some of the best and brightest minds in the space, but the values of the new ownership seem inconsistent." ”

Other employees asked what Musk's acquisition meant for employee retention and downsizing.

"It's really an uncertain period," Agravar said. "All of you have different feelings and opinions about this news, many of you are worried, some of you are excited, many of you are waiting to understand what is going on and keep an open mind... If we work together, we don't have to worry about losing the core that makes Twitter strong, which is that we all work together for the good of our customers every day. ”

Musk wants Twitter to be a powerful positive force in the world.

Musk said in a statement Monday that "freedom of speech is the cornerstone of the functioning of democracy, and Twitter is a digital town square where issues vital to the future of humanity are discussed." He added, "Twitter has tremendous potential — I look forward to working with companies and the user community to unlock it." ”