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Now That Elon Musk Has Bought Twitter, What Happens Next? NYSE
Now That Elon Musk Has Bought Twitter, What Happens Next? NYSE
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Additionally, by taking the company private, Musk could make changes to the platform with less oversight from investors, regulators, and others. He could, for example, avoid the Senate hearings in 2021 when chief executives from Facebook, Google and Twitter all stood publicly answering questions about how their platforms handle the spread of misinformation and extremism. In 2011, Facebook, now Meta, purchased Instagram for $1 billion, and today, the platform has a valuation of $102 billion.

 

 

In a press release, Musk only gave vague hints on how he would improve the service, saying that since free speech is the "bedrock of a functioning democracy," while noting that Twitter is the "digital town square." CEO pulled together a financing plan that included 12 banks, led by Morgan Stanley. Just days after revealing the plan, Musk met with Twitter executives as the company turned more receptive toward a deal, a person with knowledge of the matter told Bloomberg News on Sunday. The deal was unanimously approved by the company’s board, and is expected to be completed later this year.

 

 

When Mr. Musk announced his "best and final" offer at $54.20 on April 14, traders were more skeptical. For days after, Twitter’s shares traded in the mid-40s, far from Mr. Musk’s bid price, signaling that the markets weren’t sure the negotiations would yield an agreement on those terms. After all, Twitter’s board had announced a so-called poison pill defense maneuver, making it harder for Mr. Musk to get his way without approval from the board. Twitter agreed to sell itself to Mr. Musk for $54.20 a share, a 38 percent premium over the company’s share price this month before he revealed he was the firm’s single largest shareholder. It would be the largest deal to take a company private — something Mr. Musk has said he will do with Twitter — in at least two decades, according to data compiled by Dealogic.

 

 

Musk is a prolific Twitter user, regularly firing off news related to his companies, as well as his own stream of conscious tweets. He also, however, uses the platform as a means to tangle with politicians and critics. Yuvay Ferguson, a marketing professor at Howard University, said now is the time for companies to expand their actions beyond covering abortion-related travel.

 

 

Musk thinks it’s 20 percent–plus, and many believe it’s significantly more than 5 percent. Read more about buy real twitter followers here. That’s put the deal on hold, and ultimately, the Street is telling you, ‘$54.20 is out the window.’ It’s either a renegotiated, lower price for Twitter in the $42 to $45 range, or Musk tries to pay the billion-dollar breakup fee and walk away. The announcement follows a tumultuous few weeks between Musk and Twitter's board during which Musk became the company's largest shareholder, rebuffed the board's efforts to recruit him as a member, and launched a hostile takeover bid of the social media company.

 

 

On Friday, House Judiciary Committee Republicansasked Twitter board members to preserve records related to Musk's bid, setting the stage for a potential congressional probe and subpoenas should the party win back control of the chamber after this year's midterm elections. He came under SEC investigation after tweeting in 2018 that he had secured funding at $420 per share to take Tesla private. The agency charged Musk with securities fraud as a result of those tweets. Musk and Tesla reached a revised settlement agreement over those charges in 2019, which Musk is now attempting to terminate. The billionaire told Twitter staff he believed users should be allowed to say "pretty outrageous things" on the site as long as the content is not illegal.

 

 

According to recent social media industry statistics, Twitter is now one of the most popular social networks in the world, based on active users. Twitter has 192 million monetizable daily active users in the fourth quarter of 2020. Musk has been outspoken in his criticism of Twitter’s content moderation rules, stating that the platform must be a true venue for free speech. He expressed his hope that even his harshest critics will continue to use the site "because that is what free speech means". There are reforms that the White House thinks Congress could take to improve social media platforms, Psaki said.

 

 

The new law is aimed at protecting social media users from harmful content. Shares of Twitter Inc. were essentially flat just before the opening bell Tuesday and far short of the $54.20 per-share that Musk has offered to pay for each. The company's stock last reached that level on April 5 when it offered Musk a seat on the board before he had offered to buy all of Twitter. NEW YORK — Twitter's board has recommended unanimously that shareholders approve the proposed $44 billion sale of the company to billionaire and Tesla CEO Elon Musk, according to a regulatory filing Tuesday. Over 60 or so freewheeling minutes, the world’s richest man fielded queries over remote work, layoffs, content moderation, and other questions of pressing interest to Twitter’s roughly 8,000 employees.

 

 

Musksaid at the TED2022 conference in Vancouverearlier this month that he did in fact have funding secured at the time of that tweet, adding that he was "forced to concede to the SEC unlawfully" in the settlement.

 

 

Shortly after Musk announced the buyout plan, Twitter’s board instituted a "poison pill" measure, suggesting it intended to resist Musk’s buyout. A New York Times report on Monday described Twitter employees as divided by the news, receiving little information concerning the ongoing talks. After Musk took a 9.2 percent stake in Twitter last week, making him the company’s biggest shareholder, Twitter CEO Parag Agrawal announced that Musk would be appointed to the company’s board. Tesla is a company, a relatively small car company, that makes good high-end electric cars, right? And the stock-market value of Tesla, which makes Elon Musk the richest person in the world, comes from a lot of extreme optimism about Tesla’s future ability to make more cars and become the dominant player in car-making as cars become more electric.

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