Car stuff (public number: chedongxi)
Author | The Way
Edit | Juice
At $44 billion, Musk took down Twitter.
On April 26, the news of Chedong, on Monday, local time in the United States, Twitter announced that Twitter's board of directors had accepted Musk's acquisition and privatization proposal. The purchase price per share was US$54.20 (approximately RMB355.47) and the total transaction value was approximately US$44 billion (approximately RMB288.6 billion).
Before the acquisition, Musk had criticized Twitter many times, so after the acquisition of Twitter, he will carry out a series of reforms, such as open source Twitter algorithms to make the public platform more transparent.
The news that Musk holds shares in Twitter has not been leaked before, after the news was released, Musk immediately began to plan to acquire Twitter, although it was boycotted by the Twitter board, but the two sides still reached an agreement.
After Musk's acquisition of Twitter, it is unknown whether this public platform will be more open or more authoritarian. What is known is that former US President Trump declared that he would not return to Twitter and would insist on making remarks on his own platform.
It is understood that Twitter is a social media, similar to China's Weibo, which can publish and reprint Tweets, and also has information classification modules such as hot searches. As of 2020, Twitter has 187 million daily active users. It can be said that Twitter has a huge influence in information transmission and community operations.
First, open source algorithms will increase transparency and authenticate everyone
In a press release announcing the $44 billion deal, Musk said: "Freedom of speech is the cornerstone of the functioning of democracy, and Twitter is the digital town square where people discuss issues that are vital to the future of humanity." ”
Musk has talked about Twitter reforms at TED
"I also want to make Twitter better than ever by enhancing the product with new features, making algorithms open source to increase trust, combating spam bots, and authenticating everyone," he added. Twitter has tremendous potential — and I look forward to working with companies and users to unlock it in a way that works with the community. ”
According to the press release, the acquisition was made in cash at $54.20 (about 355.47 yuan) per share, with a total transaction value of about $44 billion (about 288.6 billion yuan). After the transaction is completed, Twitter will also need to pass shareholder and regulatory approvals before it can be converted into a private company.
Musk has tweeted that he wants to buy Twitter
Although Musk said that the motivation for the acquisition of Twitter was to build a more open and free platform, he has 84.4 million followers on Twitter, and his influence can be said to be very huge. After acquiring Twitter, he may be able to better use his influence on Twitter's social platform to enhance the company's image. Some have even joked that Musk's acquisition of Twitter may have been for the purpose of running for president of the United States.
Second, the acquisition process is tortuous Twitter board of directors refused invalid
Overall, Musk's acquisition of Twitter can be said to be very "catching horses". Previously, Musk owned a lot of Twitter shares but did not disclose, could have joined Twitter's board of directors, but after announcing his holdings, he planned to acquire Twitter. During the acquisition process, Musk also received strong resistance from Twitter's board.
On April 4, local time in the United States, documents released by the U.S. Securities and Exchange Commission (SEC) showed that Musk held a 9.1% stake in Twitter. Since then, Musk has become the largest shareholder of Twitter's shares. After the news was released, Twitter's stock price soared.
Screenshots of files that Musk provided to the SEC
Subsequently, Twitter intended to appoint Musk as a member of Twitter's board of directors, but musk refused. Later, Musk was sued by shareholders for revealing his shareholding in Twitter too late, suspected of depressing the stock price, which may involve violations of US securities laws.
On April 13, regulatory documents showed that Musk planned to buy Twitter for $41.39 billion (about 270.3 billion yuan) in cash. Among them, the purchase price per share was US$54.20 (about 355.47 yuan), and the purchase price per share was the same as the current purchase agreement price.
On April 14, Twitter's board planned to adopt a shareholder rights agreement to defend against Musk's hostile takeover, which broadly stated that if Musk or other individuals or groups acquired more than 15 percent of Twitter's issued common stock, the agreement would allow other shareholders to buy shares at a discounted price. The agreement will dilute the acquirer's shareholding and is often used to prevent unnecessary acquisitions.
Apparently, the boycott failed, and Musk pocketed Twitter. And this Thursday, local time, Twitter will release the first quarter financial report, I don't know what Musk will say when he arrives.
▲ Musk Twitter avatar and Twitter icon
Conclusion: It is unclear whether Musk's acquisition of Twitter is a blessing or a curse
After the deal closes and Musk takes ownership of Twitter, Twitter will be controlled by the world's richest man and someone who has been harshly critical of the platform. At the same time, Musk may also use it in ways that are legally controversial, such as removing negative news about Tesla.
Although Musk has said that his main interest in Twitter is related to what he believes the company's censorship of free speech. However, Musk's critics remain concerned that the billionaire's control of the platform will result in the voices of critics and comments from people associated with Musk being blocked because he often prevents critics from accessing his personal accounts.
Therefore, whether the software will get better or worse after Twitter is acquired is unknown.