Twitter confirmed that it has signed a definitive agreement to be acquired by Elon Musk after their meeting on Sunday, in which they reevaluated Musk's $44 billion dollar bid. This will have a huge impact on the future of Twitter.
As Musk has stated multiple times, his plan for Twitter is to take it private, which will lessen the platform's dependence on ads, making it more open to 'free speech,' whatever that means to Musk.
With respect to the price per share, Twitter stockholders will receive $54.20 in cash for each of their shares, a premium of 38% over the closing stock price on April 1, 2022.
Here's what Musk said
Tweets are the digital town square where the future of humanity is discussed, and free speech is the cornerstone of democracy. As well as making Twitter an even better product, I want to make the algorithms open source to increase trust, defeat the spambots, and authenticate all users. Musk said, "Twitter is a terrific platform with great potential in a tweet posted to his Twitter account.
I am looking forward to working with the company and the community to uncover that potential."
After Twitter accepted Musk's offer, what is next?
We expect the transaction to close this year. Shareholders and regulators must still vote on the deal in the United States and countries where Twitter does business before it is finalized. Given that Twitter's board unanimously approved musk's offer and that its shareholders are also recommending its acceptance, the process looks promising for Musk.
Will CEO Parag Agrawal stay on?
After the deal to take Twitter private under Musk closed, Twitter CEO Parag Agrawal told staff that the company's future was uncertain. He did, however, affirm that layoffs would not take place for now.
According to research firm Equilar, if Agrawal were terminated within 12 months of a change in control at the social media company, he would earn an estimated $42 million. Agrawal graduated from the Indian Institute of Technology-Bombay's 2005 batch. An Equilar spokesperson said the estimate includes a year's worth of base salary for Agrawal, plus his accelerated equity vesting awards.
How will Musk pay for Twitter?
Tesla CEO Elon Musk led off his presentation on the $44 billion by emphasizing the $13 billion he secured from a bank loan and the $12.5 billion he promised to provide by simply pledging a portion of the $170 billion he owns in the company. However, he hasn't explained how he plans to pay for the remainder of his campaign.
He's almost sure to have the money. According to Bloomberg Billionaires Index, Musk has a fortune of $257 billion, making him the world's richest person. Nevertheless, Bloomberg estimates that his cash and liquid assets are around $3 billion. He might approach like-minded investors, sell his Tesla shares, or dig into the unknown amount of crypto in his possession.
Changes that may occur
It is sometimes hard to determine what Elon Musk would do with Twitter if the billionaire successfully acquired it. He can be elusive at times, and his politics are hazy, so there is no concrete way to predict what he would do.
Musk has given more hints about what he will change about Twitter as he nears Monday's deal with the company in interviews, regulatory filings, and on, of course, his Twitter account. A possible change in Twitter's algorithm might lead to more content moderators and free speech?
Is this a sign that Trump will return?
That's not the case, says the former US president.
Jack Dorsey, former Twitter CEO, offers his opinion
Former Twitter CEO Jack Dorsey has given Musk his full approval following Musk's takeover of the social network. Musk's deal was okay with Dorsey, and he said it was the right decision to take it back from Wall Street. The company will no longer be publicly listed after Musk takes it private, so it won't be a publicly-traded company. Dorsey continued, "In principle, it shouldn't be owned or run by anyone. Public goods, not private companies, are what it aims to be. Elon is the sole solution I trust to solve the issue if it is a company. I believe the light of consciousness has nothing to do with money and everything to do with consciousness."
Why do things happen at Twitter? It's unclear, says CEO
Is Elon Musk going to change Twitter? It seems that Twitter CEO Parag Agrawal told staff that the future of the company was uncertain on Monday. In a town hall meeting, he made the remarks. Also, Musk plans an interview with Twitter staff later in the day. Do you think Twitter will lay off any staff? That remains to be seen.
How will Musk change the company?
The algorithm will become more open-source, according to Musk. A standard Edit button would also be helpful and an attack on spambots. As Musk's tweets have a high number of spam accounts responding, note that most of his tweets see a lot of spam responses. The primary handle name is different, but many use the Musk profile picture and name, though they use Musk's profile picture. They tweet crypto links and claim rewards from cryptocurrencies. Clicking on these links is not recommended.