Twitter has always been the go-to platform for Tesla’s owner, Elon Musk to share his vivid ideas. Very recently, Elon Musk also shared a thread of tweets that were related to how the platform can be saved from ‘dying’. Previously, Musk felt that Twitter Management lacked confidence which is why it could not live up to its potential. To change this, the advocate of free speech aka Elon Musk has now bought the company for $44 billion.
Everything began when the Tesla owner bought a 9.2% stake in the company, becoming the largest shareholder. Twitter had then announced that Elon Musk was going to join the company as a board member. Shortly after rejecting a seat at the table, Elon Musk announced he has made an offer of around $43 billion to buy the social media giant. Not to mention, he teased a ‘Plan B’ if the company rejects the offer.
The company didn’t budge for some time and re-assured its employees that there is nothing to worry about. On Tuesday, Twitter finally issued a press release, confirming that it has accepted Elon Musk’s offer after carefully assessing it.
Twitter has made a deal with Elon Musk to be bought for, $54.20 per share, in cash, valuing the company at $44 billion. After the transaction is completed, Twitter will shift to being a privately held company. This is a 38% premium from Twitter’s closing price before Elon Musk previously invested in the company.
In the press release, Twitter’s Independent Board Chair said, “The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing. The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.” The decision has been made unanimously by the board.
It will be interesting to see what Elon Musk plans to do with Twitter but what will happen next is still the big question. Elon Musk also said, “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated”.
“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated”.
-Elon Musk, CEO of Tesla
The deal is likely to close this year and CEO Parag Agrawal will be staying as the CEO until it’s a done deal but it is still a period of uncertainty. After the announcement, Parag Agrawal brought about several questions related to his job, the board, and layoffs. According to a report, he will receive around $42 million if he is terminated in 12 months amidst the change in control.
Although the CEO did not have many solid answers, he assured that layoffs aren’t planned at this time. After the deal closes, the board will be dissolved and that is when the uncertainty increases.
From the employees’ point of view, some of them are open to the idea that Twitter will be run by Musk and share his vision for Twitter, many others are bummed out with the deal that has been struck.
After the news broke out, former CEO and co-founder of Twitter, Jack Dorsey also took to Twitter to showcase how happy he is with the decision. Dorsey feels that it is a step in the right direction for Twitter. He also tweeted, “Elon’s goal of creating a platform that is maximally trusted and broadly inclusive is the right one. This is also @paraga’s goal, and why I chose him. Thank you both for getting the company out of an impossible situation. This is the right path I believe it with all my heart.”
With mixed reactions from all over the world, it is very unclear what the future holds for Twitter and the rest of the world too.
Featured Image Credits: West Observer