What are Elon Musk’s Plans For Twitter?
What are Elon Musk’s Plans For Twitter?
Elon Musk has taken a big step in the social media world. It is crucial that social media is privacy-focused and serves as a healthy and moral form of media in a society where everyone uses it. It should be more democratic and contain all the key elements of a democracy, like freedom of speech. Additionally, it should be available to all features with strict guidelines against the abuse and hate we have all seen online. The problem of maintaining social media has taken up the last five, or perhaps ten, years.
This choice involves major parties, and our daily social media platforms are improving rapidly. Twitter is one such social media that is the subject of this essay. One of the most well-known platforms around the world is Twitter. We will discuss how it is changing, current news on Elon Musk’s decision to buy out all of Twitter’s interests, and the likelihood that he will eventually buy the entire business. Twitter and Elon Musk’s decision to buy Twitter were the subjects of many updates.
Therefore, let’s take each frame of the occurrences in turn before determining how the company is performing right now and where it’s headed. First, let us see who the protagonist of this news is and why he is such a sensation!
Who is Elon Musk?
If you don’t know who Elon Musk is, you must live in a cave! He is arguably the most well-known and sensational businessman and entrepreneur in human history (at least in the twenty-first century). He is funny and knowledgeable, and he possesses the necessary knowledge and abilities to produce something in the science and technology fields.
He is the founder of the legendary Tesla, SpaceX, a space firm that creates and launches rockets, The Boring Company, and a company that makes tunnels for better and more advanced transportation (a smart car manufacturer). Everything that most technologists around the world said would be impractical in the near future has literally been rendered impossible by this man.
Elon Musk is on the list of the richest person in the world, and with a net worth of $220+ billion in June 2022, he is the richest of them all. Elon Musk maintains such large corporations in addition to many other businesses.
Among all social media platforms, Twitter seems to be his favourite; perhaps this is why Musk bought it? You never know, after all.
Reaction to Elon Musk Acquiring a 9.13% Stake in Twitter
The news that broke on April 4, 2022, sent Twitter into a frenzy. Not just Twitter but all of the business’s stockholders. Elon Musk bought 9.13% of the business’s stock. He became Twitter’s largest shareholder due to this action, among others. He now has more authority than any other shareholder in the company, thanks to his decision to purchase the largest stake.
Many effects followed the news that Elon had acquired a 9.13 per cent ownership stake in the company. This action was unexpected and unpredictable for the man, who has a lot of clout in the world. Elon has actually repeatedly demonstrated that he is not at all dependable. He acts and tweets with the same mindset. He does whatever he feels like.
There were reactions everywhere; Elon’s purchase of 9.13 per cent of the social media powerhouse sparked. It should be remembered that Elon owned approximately four times Dorsey’s part of the company at that time. Jack Dorsey is a co-founder and a crucial player in the company’s founding. After serving as CEO for a while, he eventually resigned from that role and became the director of Twitter. With this investment, Elon outperformed Jack and acquired more ownership.
The company’s share price increase was another occurrence following the stakeholding. It should be mentioned that the social media behemoth is a listed corporation because it is a sizable organisation that needs its own listing. We can only see that purchasing 9.13 per cent of a firm’s stock the size of Twitter would result in similar reactions, given that one person has the power to shift the price of bitcoin with just a tweet instantly. On April 4, 2022, the Twitter stock increased by 27 per cent once the news became public. This has been noted as the company’s shares’ single-largest increase to that point.
When his interest in Twitter exceeded 5%, Elon Musk failed to notify the SEC, which was against US security regulations. Therefore, the social media platform’s shares experienced the biggest intraday increase in their values since its 2013 IPO when he revealed his acquisition of almost 9 per cent of Twitter shares via the 13G filing of the SEC on April 4, 2022.
With a 9.7 per cent interest in Twitter, Elon was given the ability to influence corporate decisions and, in turn, the company’s reputation in the market. In reality, according to many news reports, Elon was on track to join the board, which would have given him the authority to rule the business. One of the most notable benefits that the largest shareholder of a firm receives is this. Elon, but first postponed the same till April 9, when it became effective.
The consequences or responses listed above were only a small part of the whole narrative, but they represented the biggest external and internal shifts. There were but more effects and reactions at the time that were not yet known to the public.
Elon Musk Not Joining Twitter Board
The announcement of this news, which came as everyone was anticipating Elon’s appointment to the Twitter board, was major worldwide. Let’s look at what was said in the article that Parag posted and attempt to determine what happened. To share the message with his team on Twitter, Parag sent them a screenshot of it. Elon Musk has chosen not to join our board, the first sentence of the paper stated, followed by an explanation.
He said that Elon Musk and the Twitter board had many face-to-face conversations, with no intermediaries, over many topics. Elon joined the directors of the company and was really thrilled, but they were required to be certain of the risks. According to the story, the corporation wanted Elon to function as a true board member who would represent the interests of the company and all shareholders.
The board was happy to offer Elon a position with all of the customer requirements that any company would expect of a board member. This was mentioned in the article. In a formal statement on Tuesday, Twitter confirmed that Elon would be named as a board member after a brief background check.
The job was almost complete when Elon announced the following morning that he would no longer be joining the company board. Parag stated that they have always considered the shareholders’ opinions and that they think this decision is the wisest one. Elon Musk is the company’s greatest stakeholder and owner and will continue to be so. The business will always be open to his involvement. This indicates that the Tesla CEO will retain their status as the company’s top shareholder and all of the rights associated with that position rather than joining Twitter’s board of directors.
According to Parag, the future of Twitter will be full of distractions, and everyone working there will need to prioritise their goals and accomplishments.
Elon comes across as erratic and temperamental in all of his Twitter exchanges. Not to mention that he now holds the greatest stake in Twitter, which is his favoured social networking platform. Elon is expected to conduct himself properly in front of the board and avoid making an unnecessary commotion. Elon is unpredictable as usual, but Twitter would benefit by denying him the chance to remain on the board by keeping them focused on their objectives.
There was an immediate impact that was visible to the naked eye as soon as the news spread. The Twitter stock fell as stock exchanges merely mirrored investor sentiment. Investors started to withdraw money from Twitter’s shares and portfolio due to this action, which clearly affected them. Elon is his regular self and doesn’t really care about controversies, but this resulted from the news. He only needs to tweet to knock down a stock.
Has Elon Musk Bought Out Twitter?
Yes, you heard it somewhat correctly! On April 26, 2022, Elon Musk will not actually buy out Twitter by purchasing all of the company’s shares; instead, Musk is thrilled about the deal, which is awaiting final approval. Now the enthusiasm is a “was enthusiastic.” Yes, according to sources from July 9, 2022, Elon Musk no longer has the desire to pursue the Twitter buyout and has reportedly given up on the plan. In response to Musk’s decision, Twitter said it would sue the Tesla CEO and force the transaction to go through.
Elon Musk asked the board to sell the company to him. He stated that this company has a lot of promise as a Twitter supporter and later as the largest shareholder in the business. The unrealised potential was enormous. He said that he believed he was the pivotal one who might unleash that potential.
The CEO of Tesla made the business an offer that seemed unreal. According to him, he will purchase each share for 54.20 dollars, putting the company’s value at an astounding $43 billion. The stock markets responded favourably when it was revealed that the world’s richest person was attempting to buy the dominant social media company. Twitter shares jumped up 5.3% and stood at 48.2 dollars.
Twitter said its board would review the proposal, and any response would be in the best interests of “all Twitter stockholders.”
Everything began on April 4, 2022, when Musk consented to a contract that would add him to the company’s board of directors and forbid him from acquiring more than 14.9 per cent of the firm. However, Elon decided not to join the board before his appointment took effect on April 9.
On April 13, 2022, Elon Musk made his last offer of $44 billion to buy all outstanding shares of Twitter for $54.20 each. His intention to take the business private served as fuel for this. Twitter “has to be converted as a private corporation,” according to Musk, who said that Twitter “would neither thrive nor serve [its free speech] societal imperative in its current form.”
The board later accepted his offer on April 25, 2022, even though it had earlier established a shareholder rights plan that made it more difficult for any one investor to possess more than 15% of the business without board approval. However, due to many problems with spam and phoney Twitter accounts, Elon Musk’s $44 billion proposal to acquire 100% of Twitter is still waiting.
Every decision Twitter made was intended to advance the interests of the company’s stakeholders and its growth. Elon’s current circumstances were too erratic and unpredictable to allow for logical cognition. Although Elon made a great offer, the board was unable to assess whether he was qualified to hold the position of the most important employee for the company.
The directors believed that the company would be forced to follow his instructions if Elon were to purchase Twitter because he would hold complete control. Elon was undoubtedly too erratic and unreliable to handle the entire business.
If the acquisition fails, Musk stated, “I would need to reevaluate my position as a shareholder given that I don’t have faith in management nor do I believe I can drive the necessary change in the public market.”
This was a big response because Elon recently disclosed that his ownership was actually 9% instead of the previously reported 9.13%, alarming investors in the company once more. Musk needed to be restricted because he had too much power, and it was expected that he would try to take over Twitter.
Since Elon would not invest in the company if it rejected his offer, we call this condition hostile. Without a doubt, this showed that the stock market would crash. In this situation, the company was being kept captive, and what followed appeared to be a confrontation between Elon Musk and Twitter. Even though everyone believed that everything had come to an end with Twitter and Elon Musk’s reconciliation, they intended to finish his 100% acquisition of Twitter by purchasing all of its shares, which were valued at $44 billion, on April 26, 2022, it hasn’t happened yet.
In conclusion, Elon Musk has not yet acquired Twitter. It has really decided to terminate the agreement because the social media giant misled him about the existence of false accounts there. However, upon hearing this, Twitter went wild, and the company’s management retaliated by threatening legal action against the richest person on the planet. Additionally, if either party tries to back out of the contract, they will both be subject to a $1 billion fee that was unanimously agreed upon by both parties.
Next, what? Will the deal be successfully concluded, or will it be dramatically rolled down to a legal showdown? We can only speculate on the Twitter-Musk deal’s future as we wait for further information!
The Present State of Twitter
Twitter is a very well-known social media platform. It is a fantastic news-sharing site, but its most well-known feature is the ability to express thoughts succinctly. Building a platform that will help users to type out their ideas and post them on a social wall that can be accessed from anywhere was a great idea that truly worked well.
This social platform is entirely different from other well-known platforms like Instagram, as we will see when we compare it. Instagram only prioritises images and videos (mostly small). On the other hand, Twitter is a specialised website classified explicitly as a microblogging platform. Here, it’s the words that matter. Of course, sharing photos and videos on Twitter is still primarily verbal and non-central, although there are possibilities for doing so. Instagram is more visually appealing than Twitter, which functions more as a gathering place for people with similar views and interests.
There is room for it, too, if we view Twitter from a business standpoint. The most popular uses of Twitter are for community management and customer support. Most businesses manage their community services on Twitter and are receptive to client questions. Elon Musk is close to purchasing this well-known social media platform, making him the sole private owner of Twitter.
According to the most recent news, dated June 9, 2022, Elon Musk has threatened to scuttle the $44 billion takeovers of Twitter. In response, a Twitter user reportedly showed the need for a court that would ultimately order the microblogging platform to turn over internal documents pertaining to the spam and bogus accounts. The company’s board has now unanimously accepted Elon Musk’s $44 billion Twitter acquisition, according to news from June 21, 2022.
The price of Twitter shares has dropped far below the initial price Musk offered, raising concerns about the deal’s viability. Elon Musk raised serious questions about indebtedness, spam, and fraudulent Twitter accounts, which Twitter claims make up less than 5% of its monetisable daily active users.
The Expected Future of Twitter
With Elon Musk’s purchase of Twitter, the series of events has already passed its turning point but has not yet ended. As a result, there will undoubtedly be more. If the purchase is approved, Elon Musk, a titanic businessman and computer mogul, might shift the likely course of Twitter. Change shows at least some change, if not a major one. The first such alteration, which was the approval of Musk’s proposal for adding the “Edit button” on Twitter, was apparent even before Musk made his offer to buy Twitter in full. We will take the word from Twitter that they will be adding the edit button soon, which is already in its testing phase.
Twitter is a well-known platform for verbally expressing opinions and ideas. It is famous around the world for just this one reason. Concise wordsmiths are avid users of this software and love it. It is not surprising to learn that Elon feels the same way. Elon even said in a tweet that he tweets from his porcelain throne half the time, which is interesting and may or may not be real.
For those who are curious, the word “porcelain throne” refers to the toilet seat. After acquiring the greatest interest in the business, this unpredictable CEO of Tesla is now vying to become the owner of Twitter as well. This raises people’s expectations on Twitter to the moon, or perhaps the roof. Elon is erratic and often at the centre of disputes. Twitter’s future is undoubtedly uncertain, but it will be quite exciting.
As we pay more attention to the news, we can see that this story won’t conclude in a small-town fairy tale fashion but is likely the start of some major changes at one of the largest corporations in the world.
edited and proofread by nikita sharma