excitement is experiencing one of the most shocking moments in its recent history.. On the 4th, it was announced that Elon Musk would become the social network’s majority individual shareholder and join the board of directors, but he rejected the option six days later. The step back was the tech king’s strategy to launch a $43,000 million (about €39,500 million) buyout offer and take full control of the platform. Will it be successful? And if so, what’s the future of Twitter? The richest man on the planet is known for being behind his commercial successes. teslaPayPal y Space X, but also because he is considered the king of ‘trolling’, a charismatic and controversial character whose intentions are incomprehensible and whose decisions are unpredictable. It was Twitter from the front door—his 9.2% stake is more than four times the 2% stake of company founder Jack Dorsey—and he also made a hostile offer to buy it.
Why buy Twitter?
As usual with Musk, their actions may be a mix of business strategy and ‘trolling’. It looks the same in the Twitter example. His surprising decision not to attend the shareholders’ meeting is now evident from the fact that the company charter stipulates that no director can hold more than 14.9% of the shares. Without that backing, Musk didn’t hesitate to launch the “newest and biggest” takeover offer for all of Twitter. It’s not money either. net worth of $268,000 millionFar beyond Amazon founder Jeff Bezos being the largest on the planet.
If successful, Musk is expected to make changes to “transform” the way Twitter works.. After spending several months denouncing the social network’s failure to respect that principle, he told shareholders: “I invested in Twitter because I believe it has the potential to be a platform for free speech anywhere in the world.”
Trump’s return?
In practice, this could translate into a setback to content moderation policies, as the platform seeks to limit the spread of hate speech and disinformation. This possibility Twitter worries its employeesIt has been using these measures for years. Moreover There are speculations about a hypothetical return to the social network. Donald Trump, His account was blocked after he incited his followers’ violent uprising against the US Capitol to try to forcibly stop the confirmation of his rival Joe Biden’s election victory.
Some people offer to buy It could be Musk’s strategy to increase the value of Twitter and then sell 9.2% of his stock at a higher price. when you bought those shares. But the billionaire rejected that option at a TED talk in Vancouver on Thursday this week, saying he aims to “protect free speech” and turn on the social network’s algorithms so they can be moderated. It is not known what other effects Musk’s takeover may have.
However, as we mentioned earlier, there is also a joke in this hostile takeover bid. Specifically in your offering, $54.20 per share. This figure is not insignificant: 420 is the code associated with marijuana. and also the same number he put on the table in 2018 when he tweeted that he wanted to keep Tesla private, this post got him into a lot of legal trouble with the US Securities and Exchange Commission, which he hated. Thus, even in such a heavy-duty business move, Musk finds a formula to laugh at the authorities and turn his move into a meme.
Could it fail?
Musk’s intentions may not evolve. Parag Agrawal, Twitter’s chief executive, told workers on Thursday this week that the board is examining the businessman’s offer. It is a real option for them to reject this and start a corporate war for the company in the purest ‘Succession’ style. Wearing the bandage in front of the wound, Musk has already criticized this possibility and pointed out that: The proposal must be put to the vote of the shareholders.
Twitter can also choose to apply’poison pills‘It is known that defense mechanisms prevent an unwanted share purchase, as suggested by Musk, or respond that the offer is too low. Regardless, the hostile takeover puts the current administration of the social network in a particularly difficult position. The richest man in the world is also the most played user on the platform.
If it fails, the billionaire can sell his stake in the company. If (the proposal) isn’t accepted, I’ll have to reconsider my position as a shareholder.” is estimated. Better to wait for the unexpected with Musk.