What’s Going on With Twitter?

 

Twitter has been notoriously known for censoring on its platform. Especially in the rise of COVID-19 and the 2020 election, users around the world have experienced and witnessed posts being removed for “violating” twitters policies. Most of those censored seem to be conservatives or those questioning COVID-19 origins and mandates. Elon Musk, entrepreneur, investor and business magnate, wants to put a stop to censorship and turn Twitter into a true free speech platform. Here’s what’s going on…

 

 

April 4: 

On April 4th, the public learned that Elon Musk had acquired more than 9% of the company. He owns 73,486,938 shares of twitter. Elon Musk tweeted, “Looking forward to working with Parag and Twitter board to make significant improvements to Twitter in coming months!”

 

This major purchase of shares comes just two weeks after Musk published criticism on the company, polling people on Twitter about whether Twitter adheres to free speech principles. 70.4% of respondents said they did NOT believe Twitter adheres to free speech policies. 

 

 

April 10: 

Originally, people were under the impression that Elon Musk was going to join the platform’s board of directors. However, on April 10, much to public surprise, he had declined a seat on the board. 

 

An SEC filing from Twitter on Musk’s expected board membership said he would be limited to a 14.9% stake in the company. If he walked away from the board position, he can theoretically increase his position has he wishes. It looks like Elon Musk had bigger plans for Twitter…

 

 

April 14: 

Elon Musk reveled that he made an offer to buy Twitter for $43 billion. Musk had made it clear at a TED2022 conference that buying twitter wasn’t about the money, but making the platform “an inclusive arena for free speech.” The company has “extraordinary potential. I will unlock it” Musk wrote in an SEC filing. 

Musk is currently the richest person in the world and has sufficient assets to buy Twitter. Twitter announced they would review the offer and make a decision. But here’s what they actually did…

 

April 15: 

After Elon Musk announced his intentions to buy Twitter, they enacted a “poison pill” plan to stop a hostile takeover. A potion pill is a defense tactic utilized by a target company to prevent or discourage attempt of a hostile takeover by an acquirer. However, expect Musk to fight back. He’s made it clear there could be other ways around this.

 

April 19:

Musk takes to Twitter to give his followers a clue on what is going on. He tweets, “___ is the Night” which many are speculating his intention to make a tender offer.

 

What is a Tender Offer? According to Investopedia, A tender offer is a bid to purchase some or all of shareholders’ stock in a corporation. Tender offers are typically made publicly and invite shareholders to sell their shares for a specified price and within a particular window of time.

 

 

April 21: 

Elon Musk announces he has secured the money to buy Twitter. Although he had told Twitter’s board last week he wanted to buy the entire company, he didn’t say how he would pay for it since the majority of his wealth is tied up in Tesla stock. In a new filing from the SEC, the billionaire CEO said he’s lined up $46.5 billion from banks such as Morgan Stanley, Bank of America and several others. The numerous banks have agreed to lend $25.5 billion, backed in part by some of Musk’s Tesla shares. Musk is planning on covering the remaining $21 billion himself. Musk is prepared to begin such negotiations immediately and is committed to conducting a careful, comprehensive and deliberate review to determine the course of action that it believes is in the best interest of the company and Twitter stockholders. 

April 25

It’s Official: Elon Musk owns Twitter! Twitter agreed to be taken over at $54.20 a share, a 38% premium over the stock price when it was revealed that Elon Musk had become the company’s biggest shareholder.

Not only is this a huge win to restore free speech in America on one of the massive social media platforms, but it is also the largest deal to take a company private.

 

Twitters board of directors, which consists of 11 people, met on Sunday to discuss Elon Musk’s bid to buy Twitter. Reports have surfaced that the social media platform could finalize a deal as soon as today. Although Twitter CEO, Parag Agrawal, was initially opposed to the deal, the offer per share is well in excess of the current price.   As of April 14, the board had planned to reject Elon’s offer and issue a “poison pill”, however, once Musk obtained the proper funding necessary the attitude of the board has shifted and they were prepared to begin negotations. Musk is said to have “wooed many of the social media compan’y shareholders with financind details on his $43 billion acqusition offer.” 

 

 

Last Updated on Monday, April 25 Check back for more updates as the story continues to unfold!

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