In early 2022, Elon Musk, the richest man in the world, announced that he wanted to buy the social media platform Twitter. Musk, who uses Twitter himself, wants to completely overhaul the platform.
Tesla boss Elon Musk now wants to take over Twitter and at the original purchase price. In a statement to the US Securities and Exchange Commission, Musk said on Tuesday that the deal would go through as agreed on April 25. Earlier, the Reuters news agency and other media, citing insiders, had reported that the original price of $54.20 per share would be maintained total. It was initially unclear why Musk gave up his dispute with the short message service, which had been going on for months. The news initially sent Twitter shares up nearly 13 percent to $47.93 before the stock was suspended from trading.
Musk wanted to withdraw from the purchase
Musk announced in April that he wanted to acquire Twitter for $44 billion. In July, with reference to alleged false statements by Twitter about the number of bots (fake accounts) on the platform, he then declared that he did not want to complete the purchase. Musk and Twitter have sued each other, TECHBOOK reported. The Delaware state court trial was scheduled to begin on October 17. In an initial assessment, Wedbush analyst Dave Ives said Musk appears to have realized he has little chance of winning in court and that the deal “will go through one way or the other.”
Twitter shareholders have already approved the sale to Musk. As a result, the deal could close rather quickly in the coming weeks if both parties agree on the original terms. Financing would also be relatively easy. Musk has sold $15.4 billion worth of Tesla stock since announcing he was buying Twitter. Some experts assume that he could sell further shares in the electric car maker to finance the takeover. Tesla shares were up 2.5 percent just before the end of trading in New York on Tuesday.
3 things that could change now
With the purchase, the richest man in the world would take over one of the most influential media platforms on the planet. In connection with the court case, text messages had been published, according to which he would like to convert Twitter from an advertising to a subscription model. In addition, services such as money transfers should be made possible. The deal would also have a political dimension, at least in the US. Supporters of former President Donald Trump hope Musk would unblock his user account. The Republican was banned from Twitter after his supporters stormed the US Capitol on January 6, 2021.
Freedom of speech without moderation
Musk had already started several polls on Twitter before announcing his intention to buy. Among other things, he wanted to know from users whether Twitter should become open source and whether the platform adhered to the principle of American free speech. The entrepreneur had repeatedly criticized that Twitter blocked or at least muted conservative accounts and that the platform was a mouthpiece for left-wing voices. One goal of the takeover is to allow more freedom of speech without Twitter’s intervention.
Fight against bots
Musk also wants to take rigorous action against bots. Bots often control fake or inactive Twitter accounts and distort both the number of followers of prominent personalities and the opinion on hot political issues.
Subsequent editing of tweets
Another change that has been discussed for years is an “edit button”. Musk also asked Twitter users about this topic if they wanted such an option. Three quarters of the participants answered the question with “yes”.
With material from Reuters