Is Elon Musk buying Twitter for $41.4 billion

Apr 14, 2022 - 18:25
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Is Elon Musk buying Twitter for $41.4 billion

After Elon Musk became Twitter's largest single shareholder, the South African has now launched an official takeover bid worth $41.4 billion. If there is a change in ownership, there should be changes as well.

The American Securities and Exchange Commission recently issued a report that made quite a stir. Elon Musk, the CEO of Tesla, has held 73 million Twitter shares since April 5, amounting to around 9% of the firm. The announcement resulted in a 25% increase in stock price.

As soon as it was revealed that Musk is Twitter's largest single shareholder, the short message service underwent adjustments. The long-awaited editing capability for tweets will be tested before the end of the year.

According to the SEC, the South African has now made a $41.4 billion acquisition attempt. Each share would be worth $54.20 to all shareholders. Twitter's stock closed at roughly $46 on Wednesday.

Musk has already stated that if the takeover is successful, he intends to delist Twitter. Even though he only recently openly queried, in his customary provocative manner, whether Twitter will perish, the world's richest man sees immense promise in the short message service.

The context for this query is that "most" Twitter accounts with a large number of followers, according to Musk, would only provide "very little stuff."

The Tesla CEO bases the data on a tweet from World of Statistics, which covers the top ten most popular Twitter accounts. Former US President Barack Obama leads the way with 131.4 million subscribers, followed by Canadian pop musician Justin Biber with 114.3 million and US pop singer Katy Perry with 108.8 million.

Elon Musk, who has over 80 million followers, is also among the top ten.

According to memoirs, Tesla's CEO prefers to be around people who believe in his vision and are willing to sacrifice all for the sake of achievement.

Despite the fact that Musk is now the company's largest single shareholder, he does not sit on the board of directors, as Twitter CEO Parg Agrawal has stated.

Musk's appointment to the board of directors is expected to be made official on April 9th. Elon Musk, on the other hand, said on the same day that he would not be a member of the supervisory board.

It is yet unknown whether Twitter will be sold. In 2021, Twitter had 353 million monthly active users globally, with journalists, lawmakers, and private citizens using the short message service to disseminate information and entertaining contributions in a short and concise manner.