(Observer Network News) Comprehensive Reuters and the BBC reported that on April 25, local time, Twitter accepted the acquisition agreement of elon Musk, the world's richest man. Under the deal, Musk will buy Twitter for $54.2 per share, totaling about $44 billion, the same as its initial offer. Trump, who was previously permanently banned by Twitter, congratulated him on this, but said he would not return to the platform.
In fact, just last week, the acquisition seemed uncertain, but when Musk overthrew himself to Twitter shareholders with the details of the financing offer, the negotiations accelerated over the weekend.
Musk said on Twitter on the same day that he hopes Twitter can become a platform to continue to provide people with different opinions. In addition, Musk also said that he hopes to make Twitter's algorithm public to clarify the specific logic of content recommendation and blocking.
"Freedom of speech is the cornerstone of the functioning of democratic politics, and Twitter is a digital town square where people debate matters that are vital to the future of humanity." Musk said, "I also want to enhance the product with new features, open source algorithms to increase trust, combat spam accounts and authenticate all humans to make Twitter better than ever." ”
Musk said: "Twitter has great potential — I look forward to releasing it with the company and users." ”
Musk added in a separate tweet that he wanted his critics to stay on Twitter as well, "because that's what free speech is all about."
After the news of the acquisition negotiations, Twitter shares rose 5.7% on Monday (25th) to close at $51.70, nearly 40% higher than the closing price of the last trading day before Musk announced that he became the largest shareholder, and lower than the purchase price proposed by Musk. This suggests that Wall Street believes Musk's acquisition has been oversized. But when Twitter announced its goal of doubling revenue last year, its stock price rose to more than $70 a share at one point, and the purchase price was still below that range.
According to Forbes, Musk, who is worth $268 billion, has said that his main concern is not Twitter's economic problems. "Having a public platform of maximum trust and broad inclusion is extremely important for the future of human civilization. I don't care about economic issues at all. ”
Jonathan Boyar, managing director of Boyar Value Group, a Twitter holder, said: "I think if we give the company enough time to transform, our earnings will greatly exceed Musk's current offer." ”
Twitter announced on the same day that Musk received $25.5 billion in debt and margin loan financing and provided $21 billion in equity commitments. Twitter noted that the deal has been unanimously approved by Twitter's board of directors and is expected to close in 2022, subject to approval by Twitter's shareholders, receipt of applicable regulatory approvals and other customary closing conditions. Upon completion of the transaction, Twitter will become a privately held company. Analysts note that no regulatory hurdles are expected.
Bret Taylor, chairman of Twitter's independent board, said Musk's acquisition proposal was the best outcome for the holders. The Wall Street Journal pointed out that if the deal is successfully completed, it will be one of the largest acquisitions in the history of the technology industry, and it may have a profound impact on the world for many years to come, including changing the way billions of people around the world use social media.
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It's unclear how much the "break-up fee" will be, and it's not certain who will manage the new company.
Musk, who has more than 80 million followers, has been an active user of Twitter. In recent years, the self-styled "free speech absolutist" has been critical of Twitter's "lack of freedom of speech" and has expressed ideas for improving Twitter or creating new communication platforms.
After the US Capitol Hill riots last January, Twitter immediately banned the account of former US President Trump for "fear of inciting violence". At the time, Musk said that "many people would be extremely unhappy with West Coast Technology as the actual arbiter of free speech", which was widely criticized.
Now the news of Musk's takeover is undoubtedly welcomed by the right. Although Musk has not publicly stated on the restoration of Trump's account, Trump himself has said that even if his account is restored, he will not rejoin Twitter.
"I'm not going to use Twitter, I'm going to continue to use TRUTH." In an interview with Fox News on Monday (25th), Trump said, "I hope Elon acquires Twitter because he will improve it, and he is a good person, but I will stick with TRUTH." TRUTH refers to Trump's self-created social media "TRUTH Social," which launched on the app store in February and became the most downloaded free app on Apple's App Store just hours later.
The White House declined to comment on the acquisition, but spokesman Psaki told reporters: "Regardless of who owns or runs Twitter, the president has long been concerned about the power of large social media platforms like Twitter to spread misinformation." ”
The change in attitude of Twitter's board is evident. Earlier, a person familiar with the matter revealed to the media that Twitter is currently in an in-depth exchange with Musk on the acquisition transaction, and the two sides may reach an agreement on the 25th, or it may be reached within this week. People familiar with the matter said the conversation between the two sides is expected to focus on some other issues, such as how much compensation Musk will pay if the agreed deal breaks down before it is completed.
In early April, after Musk offered to buy at $54.20 per share at the "best and last offer," Twitter's board quickly introduced a "poison pill plan" to fend off hostile takeovers, but after Musk got a financing commitment, Twitter's board's attitude changed.