After weeks of "thinking twice," the world's richest man bought the social media company for about $44 billion.
Above: This person is now an online arbiter of "free speech."
Elon Musk is already the CEO of Tesla and SpaceX, the founder of boring Company, and the richest man in the world. Now, he has another title in his amazing resume: the boss of Twitter.
On Monday afternoon, Twitter announced that it had reached a definitive agreement with Musk to buy the company for about $44 billion. Once the deal closes, Twitter will become a privately held company.
Musk retweeted his own words in a press release announcing the deal, naturally cheering on Twitter for the acquisition:
At a staff meeting at 2 p.m. Pacific Time on Monday, more questions were reported than reliable long-term answers. Parag Agrawal will remain Twitter's CEO for at least the next six months until the deal with Musk is completed, a source said. In addition, Parag Agravar announced at the meeting that there would be no layoffs "at this time." Agravar concluded, "We don't have all the answers." This is a time of uncertainty. ”
Musk's acquisition also means Twitter may no longer be managed by its existing board and will no longer be publicly traded. Musk previously said in a filing with the SEC: "Twitter needs to transform into a private company." ”
Musk had been posing for weeks before, and the billionaire had repeated conversations with Twitter's board.
Why did Elon Musk buy Twitter?
Musk is definitely a regular on Twitter and one of his most outspoken critics. On March 25, Musk tweeted that "free speech is essential to a functioning democracy" and conducted a yes/no poll of his fans asking if they "think Twitter strictly adheres to this principle." In another tweet, he hinted at ambitious intentions and said, "The outcome of this vote will be important." Please vote carefully. Of the more than 2 million votes, the final result was that 70.4 percent denied it and 29.6 percent approved.
A day later, Musk sent two more tweets, saying, "Given that Twitter is actually a public town square, the failure to uphold the principle of free speech fundamentally undermines democracy." So what should be done? and "Need a new platform?" ”
(It must be noted here that Twitter's content moderation is noticeably lax compared to other social media platforms.) And less regulation could lead to the site becoming the center of disinformation and a robot-made extremist movement. ）
On April 4, the world's most web-savvy billionaire announced that he had bought 9.2 percent of Twitter's stock to become the company's largest single shareholder. On the same day, he also tweeted another yes/no vote, asking fans, "Do you want an edit button?" Although Musk actually bought the company's shares on March 24, he did not file the necessary documents to announce the acquisition to the SEC until 10 days later.
The next day, April 5, Twitter CEO Parag Agravar announced that Musk would be appointed to the social media company's board of directors. The backlash from Twitter employees and many others on the internet prompted the platform to host the AMA (Ask Me Anything) with the "emerald" heir of South Africa's apartheid era. Just a few days later, on April 11, the deal failed. Musk ultimately failed to join Twitter's board, probably because he learned that he would not be able to acquire more than 14.9 percent of the company if he became a board member.
After learning that the Dogecoin pioneer would no longer be a member of Twitter's board, Twitter CEO Parag Agrawal said in a statement to other members of the board: "I believe this is the best." On April 12, Twitter investor Marc Rasella filed a lawsuit against Musk, saying he failed to disclose the acquisition of 9.2 percent in a timely manner.
Then, on April 13, Musk filed a filing with the SEC announcing his intention to buy a 100 percent stake in Twitter for $52.40 per share in cash. He threatened that if his bid was not accepted, he would sell his 9.2 percent stake, which would actually cause the company's stock price to plummet. In Evidence B submitted to the SEC, Musk said: "My offer is my best and final offer, and if it is not accepted, I will need to reconsider my position as a shareholder." Twitter has extraordinary potential. I'm going to turn it on. ”
Following that announcement, Twitter's board of directors developed a "poison pill" rights plan on April 15 — a self-deprecating defense plan to prevent mergers. Under the plan, if any one person intends to acquire 15% or more of the company's shares, other shareholders can purchase additional shares at a discounted price. In practice, this means that Musk must at least talk to the board first, otherwise he can't buy the entire Twitter directly.
Still, Musk persevered. On April 24, Twitter's board began negotiations with Musk. Between the announcement of those talks and Musk's eventual acquisition of the social media site, the value of Dogecoin rose nearly 9 percent, while stocks associated with former President Donald Trump's social media venture Truth fell more than 5 percent. Trump created the platform, which few people use, after being permanently banned from using Twitter. And if Twitter lifts bans like his, the "truth" has even less reason to exist.
At noon on Monday, Musk tweeted: "I hope even the harshest critics of me can stay on Twitter because that's what free speech means." "It should be noted that this is not the meaning of the right to freedom of expression in the First Amendment to the US Constitution. In the United States, no one has a constitutional right to tweet or other content on private social media platforms.
Musk is similar to his misunderstanding. Florida Governor Ron de Santis also doesn't seem to understand the definition of free speech. On Monday, he tweeted that "@elonmusk offer to buy Twitter is a good deal for shareholders, and it gives people a glimpse of the prospect that this platform will become a place where free speech thrives rather than a tool for narrative enforcement." ”
What could happen once Elon Musk owns Twitter?
According to anonymous sources, twitter companies are freezing code and not allowing product or platform updates unless "business critical." This means that company employees cannot change any of the site's content for the time being without the approval of the vice president. The move is reportedly a protective measure designed to prevent "out-of-line" behavior by angry employees.
In the long run, while the "edit button" tweet and Musk's emphasis on unbridled "free speech" hint at his ideal Twitter world, it's unclear what will change with the platform under his guidance.
In a statement announcing the acquisition, Musk reiterated many of his previous comments on Twitter, saying: "Freedom of speech is the cornerstone of the functioning of democracy, and Twitter is a digital city square where people can discuss issues that are vital to the future of humanity." I also want to make Twitter better than ever by adding new features to the product, making algorithms open source to increase trust, beating the same bots, and authenticating all humans. ”
Musk has repeatedly said that these "spam bots" are one of his focus on the company:
Many observers have speculated that Musk may use his control of the company to relaunch controversial public figures and news outlets that were previously banned from using the service. Joan Donovan, director of research at the Shorenstein Center on Media, Politics and Public Policy at harvard Kennedy School, said: "If Musk buys Twitter, then he will definitely let Trump return to the platform. Open the door to the 2024 campaign. ”
Research director Joan Donovan also said: "My other idea is that Twitter will further become a battlefield for culture wars. With a 'free speech' mandate, content moderators will excessively harass LGBTQ people (all non-heterosexuals), women, BIPOCs (blacks, indigenous people, and people of color), and anyone else fighting for civil rights. ”
According to a Poll released april 5 by market research firm Ipsos, 40 percent of people who describe themselves as "twitter heavy users" said they believe Musk's acquisition of Twitter will "allow Twitter to allow greater freedom of speech," and 40 percent believe it will "improve the quality of discussion on the platform."
What is Musk's bid?
Today's agreement stipulates that an unnamed entity wholly owned by Elon Musk will pay about $44 billion. Under the terms of the deal, Twitter shareholders will receive $54.20 in cash for each twitter ordinary share held by Twitter shareholders upon completion of the deal. The purchase price represents a 38% premium to Twitter's closing price on April 1, 2022. April 1, 2022, was the last trading day before Musk disclosed his stake in about 9 percent of Twitter.
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