The Twitter board of directors announced today that they have accepted a takeover offer from Elon Musk, the founder of PayPal and Tesla Motors. I plan to take [the company] private at $25 per share, Musk said in an email to employees, and I have secured funding to do so. He later added that he believes this deal will keep Twitter independent and free from interference by any one person or group.
Shares in Twitter surged after news broke that billionaire investor and founder of Tesla, Elon Musk, would lead a buyout of the troubled social media platform.
Shares in Twitter surged as rumours began circulating that tech mogul and entrepreneur, Elon Musk, would lead a buyout of struggling social media platform. The business magnate is planning to launch a takeover bid worth US$420 per share, which will mean he’d pay around US$10bn (£7.6bn) for control of Twitter.: In an early-morning tweet confirming his intention, Mr Musk said he hoped to create some useful [and interesting] services at Twitter through his takeover bid. The new business will be called SpaceX Ventures and will focus on supporting companies that further humanity’s mission for space exploration. Meanwhile, according to reports in Bloomberg Businessweek and CNBC, Mr Musk has asked Goldman Sachs Group Inc.
One report suggested potential investors were shocked at how much Mr. Musk was willing to pay for it.
Mr. Musk's bid could eventually end up in court, though it may still face a tough fight from shareholders who don't think it is worth anything near what he is offering. The lead underwriter for Twitter's IPO, Morgan Stanley, declined to comment on Mr. Musk's offer or whether it would recommend that shareholders sell their shares to him. One report suggested potential investors were shocked at how much Mr. Musk was willing to pay for it.: The market has been pricing in some type of buyout premium for months and so these numbers are getting people’s attention, said Tuna Amobi, an analyst with CFRA Research. Mr. Musk will have to prove his ability as a manager if he wants institutional shareholders who bought stock in Twitter since its IPO.
In an unexpected move, it was revealed that Mr. Musk intended to take his newly acquired social media platform private in order to make it great again.
After acquiring Twitter, Mr. Musk has taken several steps towards making it great again; most notable are his decision to ban all bots and trolls as well as begin a full-scale investigation of shadowbans. While many have criticized his decisions, citing that they aren't being made with Twitter's best interests in mind, others have come out in support of his actions.: In particular is conservative leader Candace Owens who thanked him for showing how truly corrupt our mainstream media had become. When asked about how he came across Ms. Owens and why he had chosen her to represent conservatives on Twitter, Mr. Musk was quoted as saying: She seemed like she was willing to buck the establishment…I'd already decided I wanted Trump supporters around me when I took over so I figured why not?
A company spokesperson told reporters the transaction had been unanimously approved by the five members of the board, including Mr. Dorsey, who described himself as thrilled with the deal.
This is a deal that will not only secure our short-term future, but also put us in position to build further for our long-term goals. This was just too good an opportunity for us to pass up. The Twitter CEO added that Mr. Musk's proposed merger would allow him and his team to pursue their vision of unfettered, honest conversation without fear of interference from outside parties. Mr. Dorsey told reporters he was optimistic about working with Mr. Musk: He's clearly a person with vision, he said, adding that he had been impressed with recent comments made by Tesla's founder regarding renewable energy and space exploration.: I think it goes without saying that I've always admired what Elon has accomplished.
The agreement envisages no salary or cash compensation for Mr. Musk - instead he will have a 20 per cent stake in whatever new entity emerges from what he describes as a merger of minds. Section: Mr. Musk has confirmed he plans to run both companies simultaneously with twice the resources available. Section: His ultimate vision is said to be an online content sharing hub hosting millions of blogs and podcasts with readers free to comment on all content - similar in appearance to Reddit but with far fewer trolls.
Recode suggests that Twitter's board of directors has agreed to sell itself after a week-long bidding war for an undisclosed sum.: WSJ reports Mr. Musk has secured funding from several private equity firms and Microsoft founder Bill Gates, with their input on product strategy likely instrumental in pushing through what many have speculated could be one of Silicon Valley's most peculiar acquisitions. Section: Elaborating on his vision for a new multi-media entity, Mr. Musk has said he intends to utilise what he calls new and exciting marketing techniques including integration with Tesla which would enable users driving Model S vehicles to directly post videos onto their Twitter feeds, bypassing content moderation teams entirely.
How might Elon Musk change Twitter?
Social media giant Twitter finally has a new CEO, and it’s none other than Tesla founder and innovator Elon Musk. The deal, worth $35 billion, was announced on Friday morning; going forward, both companies will retain their current names. Musk stated that We’re incredibly excited about Twitter’s potential. He went on to say that with his help as CEO, I have no doubt that Tesla will become one of most powerful companies in history. I look forward to working with everyone at Twitter to make sure we all reach our full potential together. I can assure you that we will never stop fighting for what’s right!
Where did Elon get money for Twitter?
Many were surprised last week when news broke that Twitter’s board of directors had received a takeover offer from entrepreneur and inventor Elon Musk. According to sources close to Tesla Motors, Inc., its CEO is proposing an acquisition at $19 per share. If successful, it would mark the company’s largest-ever deal and elevate its market capitalization above $20 billion. Shares surged 17% on Tuesday following news of Musk’s plan. While they later pared their gains in line with a broader market selloff, analysts expect more upside potential in coming weeks. It could also pave way for further moves toward big players in other industries such as consumer electronics and automobiles, particularly electric cars…MORE…..(to be continued)
