Elon Musk Looks to Take Over Twitter

Elon Musk Looks to Take Over Twitter

One of the most polarizing figures, Elon Musk, made a bit to take over Twitter with a firm bid that could privatize the platform.

While many people around the globe turn to Twitter and other social medial platforms for information, entertainment, and connectivity, it’s possible Musk believes this platform to have a more important place in modern society than it has. Then again, many of us start talking about what we found on social media before we dig in and find out if something is real or not.

A Hostile Takeover Bid that’s Hard to Ignore

The offer made by the Tesla CEO is a total of $43 billion, which is considered a hostile takeover bid. The request would allow him to buy 100% of the social media company. Musk outlined his offer as being a 54% premium on shares from the day before he began investing in the company and a 38% premium before his investment was publicly announced. This offer makes some sense because of the impact his investment in Twitter had on the price of shares. Even at this premium, which is a price of $54.20 per share, the current value of shares is $70 each.

Is the Offer Too Low?

While the offer is lower than the current price per share, Twitter would not have increased in value as much as it did if it weren’t for the investment by Elon Musk. If all there was to this story was the fact that Musk is making this offer, the story might end here, but he’s making threats of another sort, which could cause an uproar for the company unless other investors step in and grab up more of the shares of this company.

Free Speech Expectations Aren’t Being Met.

It’s unclear if the Tesla CEO is simply tired of getting into hot water over his tweets or has severe issues with this platform’s free speech aspect. It’s possible he’s a bit confused as to what free speech means, which doesn’t mean a person can say what they want when they want without consequences. How many of the general public have faced bans on other platforms for 30 days or more? Most of us either have or know someone that has met a temporary ban because of a post. Maybe because Musk can afford to buy Twitter, he thinks he should.

The Language is Flowery, but the Message is Clear

Elon Musk sent a note to the SEC to discuss his potential for buying Twitter and his expectations. In this message, he mentions his reasons for investing in Twitter as a platform for free speech around the globe. He is also critical of the company and its rules regarding posts and language used. While the message is undoubtedly a foundational element of American principles, it will not get anyone at the SEC to feel an ounce of sympathy for him.

A More Viable Threat with What Musk Has

Elon Musk is one of the wealthiest people in the world, and that puts him in a unique position to buy companies, invest in them, impact stock prices, and withdraw from the same. He mentioned that if his takeover bid is rejected, he could reconsider his position as a shareholder. He doesn’t have confidence in the current Twitter leadership to make the changes necessary to enable free speech worldwide. If his bid is rejected, will Musk delete his Twitter account and leave the platform altogether. His performance has become an essential media tool to reach more than 81 million followers.

Musk was the Largest Shareholder

Until Vanguard Group purchased more shares of Twitter than Elon Musk, he was the largest individual shareholder in the company. Unfortunately, that position should come with a board seat, but he was warned to stop tweeting critical commentary, or he might not receive the heart. Musk withdrew his interest in being on the board because of this action. This could be what spurred the push for a 100% takeover of this social media company or a complete withdrawal of his current investment in the company.

Will Twitter Become Musk-Led?

Will Twitter accept the takeover bid, or will it be rejected as too low? The Tesla CEO has more than enough money to increase his offer to a price that matches the $70 share price, but that might not be something he’s ready to do. If he can take over this company, will it become a cesspool of anarchy with no rules and no limitations? Will many Twitter users leave the platform because of the lack of controls and censorship? We won’t know until the bid is accepted, but these are possibilities.

This post may contain affiliate links. Meaning a commission is given should you decide to make a purchase through these links, at no cost to you. All products shown are researched and tested to give an accurate review for you.

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