How Elon Musk Bought Twitter?
/Elon Musk's purchase of Twitter was the most talked-about action in the corporate and technology world in 2022. Beginning as a spontaneous share purchase, the action snowballed into a $44 billion acquisition questioned on grounds of free speech, corporate control, and billionaires' clout in the technology world. In this article, the author walks the reader through the chain of actions Musk undertook, the funds, and the public's view behind his acquisition of Twitter.
Elon Musk’s Quiet Start With Twitter Stock Purchases Before Making His Intentions Clear
Elon Musk began acquiring Twitter stocks in January 2022 with minimal media attention. By the month of March, his company holding had crossed the 5% mark, and on April 4, 2022, it came out that Musk became the biggest individual shareholder with a holding of 9.2%. This sent Twitter's share price directly upwards in excess of 27%, showing incredibly high investor enthusiasm for his involvement.
Musk's growing power on Twitter sent shudders of surprise and fascination across the technology sector. There were speculations on whether he would try influencing the platform's content, or even attempt to buy it outright.
Elon Musk’s Quiet Start With Twitter Stock Purchases Before Making His Intentions Clear
Only days following the reveal of Musk's stakes, he received an offer to serve on Twitter's company board of directors. Musk declined the offer and made a competing bid to buy out the company outright on April 14, 2022. He offered $54.20 per share, an offer of about a 38% premium over the company's value at his initial investment
Musk had stated that Twitter needs to be made privately owned so that it can have more freedom of speech and fewer content moderation practices he termed restrictive. Twitter's board hesitated but initially deployed the "poison pill" strategy in an attempt not to be taken over on an involuntary basis. However, later in weeks, the company changed its direction and accepted Musk's offer.
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Legal Challenges And Public Disputes Between Musk and Twitter’s Board Nearly Ended the Deal
Despite the agreed price, the deal did not proceed as expected. Musk had concerns about the bot or spam accounts on the platform as of July 2022 and blamed Twitter for being opaque about its data. Musk attempted to pull out of the deal, leading Twitter to sue in Delaware's Court of Chancery in an effort to enforce the deal.
Court documents, private texts, and corporate emails were revealed in this court battle, showing the internal communications of Twitter as well as Musk's companies. Court documents stated Musk attorneys argued that the real number of bots on Twitter far exceeded what it had stated. The trial in court had been scheduled for October 2022, but before proceedings began, Musk decided to complete the purchase on terms agreed upon initially.
Elon Musk Officially Took Control of Twitter On October 27, 2022, And Implemented Immediate Changes
On October 27, 2022, the $44 billion transaction concluded, with Musk taking ownership of Twitter. Among his initial actions was firing high-ranking executives like CEO Parag Agrawal, CFO Ned Segal, and policy chief Vijaya Gadde. Musk also brought in engineers and advisers at Tesla and his other companies in order to begin reviewing Twitter's internal systems.
Within weeks, Musk had initiated an overhaul of Twitter Blue (its paid offering), reduced the company's workforce by a significant percent, and began phasing its content moderation approach. There were reported high app usage rates according to Sensor Tower data, as advertisers had already begun re-examining their campaigns for brand safety concerns.
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The Ongoing Impact Of Elon Musk’s Twitter Acquisition Continues to Shape Global Conversations
Twitter has seen an era of high-profile, rapid transformation since its takeover. There has been extensive usage of the platform for conducting surveys on product revamps, rebranding verification schemes, as well as openly arguing over monetary policy with users in real-time. Twitter's global users at the start of 2023 had about 450 million monthly active accounts but then declined due to advertisement withdrawal, according to Statista. It is too early to assess long-term effects, but the Musk takeover has undoubtedly reshaped how Twitter is viewed internationally as well as by communications.
