Elon Musk is known for being, well, Elon Musk. He always goes above and beyond what is being asked in the most bizarre ways. One of his most recent, bizarre behaviors was his supposed attempt at buying out Twitter.
What Happened?
In case you haven’t seen what is going on in recent Twitter news, VALLEY is going to catch you up to speed. On April 4, it was announced that Musk had bought 9.1 percent of Twitter’s shares. On paper, that might not seem like a lot, but it is certainly significant. This purchase makes Musk the platform’s largest shareholder. Following this move, Twitter offered Musk a board position, which would restrict Musk to 15 percent ownership of the company. Musk, knowing this was a move to prevent him from gaining too much control over their company, declined the offer to sit on their board.
Soon after declining a seat on their board, Musk updated his financial filings on the Securities Exchange Commission. The SEC is a government agency that protects and regulates investors and securities markets respectively. By updating his filings in the SEC, Musk has indicated that he will not be quiet in his involvement with Twitter.
How Are People Reacting?
Even though some have grown to expect Musk to make decisions of this sort, others have mixed opinions on the situation. Many people are angry with Musk for making an unnecessary purchase that could affect how people use the social platform in the future. However, some are elated about the prospect of Musk having control over the company. One group, in particular, is excited about this possibility. According to The Verge, House Republicans, “are calling on the board to preserve all records of the transaction, potentially setting the ground for a future hearing if the party takes control of the House after the midterm elections.” In other words, if Twitter is fully owned and reformed by Musk, then it could be a place for Republicans to tweet in peace without the backlash that they currently see on the platform.
What Happens Next?
Many people are wondering what the next steps in the Musk-Twitter saga will be. There are many questions about how this will end. Is Musk seriously thinking about buying out the company? Is Musk trolling Twitter with his wealth? Musk claims his bid is “best and final.” This means that his bid for buying Twitter at 46.5 billion dollars is his last and highest offer. However, for him to make this deal official he would want to make Twitter a private company, demonstrating that Musk isn’t just buying Twitter for financial gain. He plans to protect free speech and open source the platform’s algorithm.
Regardless, Twitter is not having it. The board members are plotting a response to Musk’s plans by establishing a “poison pill.” According to The Verge, this “poison pill” contains, “a new ‘shareholder’s rights plan’ to give certain shareholders the right to purchase more stock if Musk or another buyer attempts to seize control.” What does this mean? Twitter is fighting back as this Musk-Twitter saga continues.
New Beginning
Just recently, as of April 25, it was announced that Elon Musk has officially acquired Twitter. Twitter has accepted Musk’s bid of 44 billion dollars to make the company private. This makes Musk the biggest shareholder of the company. By the end of this year, Musk will have the power to reform the social platform in his own way.
Tweet us, @VALLEYmag, with your thoughts on this saga.
