Max E.Fri, Apr 15, 2022 8:30 PM
Musk Explains His Plans to Buy Twitter
The richest man in the world, Elon Musk, whose fortune exceeds $300 billion, revealed his plans to modernize the social network Twitter in the event of its purchase. The billionaire shared his thoughts on changing the user interface and introducing some restrictions at the TED Talk conference in Vancouver.
Even though Tesla's CEO, given his financial means, could afford to buy Twitter outright, Musk decided to do the right thing by going through "all circles of bureaucratic hell." So, just a few days ago, the entrepreneur filed an application with the US Securities and Exchange Commission, which stated that Musk was ready to purchase all Twitter shares, in addition to the 9% that he already owned. According to the document, the Tesla CEO was offering $54.2 per share of Twitter, while its market price is $45.08.
Twitter quotes responded with an 11% increase to the offer of the founder of Tesla. The next day, Saudi Prince Al-Waleed bin Talal Al Saud rejected Musk's offer. Through the Kingdom Holding Company, he controls about 5% of the shares of the platform.
At the TED conference, Musk noted that he has a "plan B" in case Twitter shareholders reject the offer. The billionaire did not disclose details. According to the head of Tesla, he is not going to "monopolize" the social platform, but he has enough capital to acquire it.
While the question of whether the social network becomes the property of Musk remains open, the billionaire did not hesitate to share plans for the complete modernization of Twitter. In a conversation with one of the organizers of the TED Talk conference, Chris Anderson, Musk stressed that Twitter should use open source algorithms to rule out any "behind the scenes manipulation." He believes that users should be allowed to edit posts, as well as actively combat fraud and spam on the platform.
The community was divided on Musk's proposal. Some believe that the billionaire will be able to do a lot of good for Twitter, while others call the initiative a "hostile takeover." In particular, the controversial opinion was expressed by the founder of Dogecoin (DOGE) Jackson Palmer.
Twitter's board of directors also does not share Musk's optimism and intends to fight the takeover. Managers deemed the proposal "undesirable".
In the business circles, the attitude towards the billionaire's initiative is also ambiguous. According to CNBC, investment bank Stifel downgraded Twitter's stock, explaining that the company is heading "toward the Elon circus."
In April 2022, Musk became the largest shareholder of Twitter, having bought 9.2% of the company's securities for $2.89 billion. Previously, the billionaire criticized the social network's freedom of speech policy.