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acquisition of twitter by elon musk

james choice · 2024-08-25T00:13:28.795002-07:00

`elon musk`’s twitter takeover was one wild ride! it all started back in april 2022 when musk revealed he’d bought a 9.2% stake in `twitter`, making him the largest shareholder. people were shocked, wondering what his plan was. soon after, twitter’s ceo announced musk would join the board, but then, in true musk fashion, he changed his mind and decided not to join. this left everyone guessing his next move. not long after, musk dropped a bombshell by offering to buy `twitter` outright for $54.20 per share, valuing the company at about $44 billion. he said twitter needed to go private to become a true platform for free speech. to fund this massive deal, musk planned to use $21 billion of his own money and got banks to pitch in with $25.5 billion in loans. twitter’s board wasn’t too keen on this idea initially and put up a “poison pill” defense to stop musk from easily taking over. but as the days went by, they eventually caved in and accepted his offer, probably because the shareholders liked the 38% premium on their shares. then things started getting messy. musk suddenly announced that the deal was “on hold” because he was worried about the number of fake accounts on twitter. this threw the whole deal into doubt, and some people thought musk was just looking for an excuse to get out or lower the price. things escalated when musk said he wanted to pull out of the deal, claiming `twitter` wasn’t being transparent about the number of bots. twitter wasn’t having any of it and took him to court in `delaware` to force him to go through with the buyout. just as they were gearing up for a big court battle in october, musk did another 180. he decided to go ahead with the purchase at the original price. by the end of october 2022, the deal was done. musk took over twitter, fired top execs like the `ceo` and `cfo`, and immediately started making big changes. he laid off about half the workforce, relaxed some content moderation rules, and even hinted at turning `twitter` into an “everything app” called `x`. now, with a massive debt to handle and some big changes to twitter’s direction, the platform is in a pretty uncertain spot. musk’s moves have made waves, and it’s still unclear where he’ll take twitter (now x) next. it’s been a rollercoaster, and the ride isn’t over yet!

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1 more entry

flaminm
aug 25, 2024 12:22 a.m.

it is now the worst buyout for banks since the financial crisis. the wall street journal

aug 25, 2024 12:22 a.m.

flaminm