Elon Musk Buys Twitter For $44 Billion
The latest news is that Elon Musk has signed a contract to buy Twitter for $44 billion. The deal was announced back in April, but it’s likely that Musk wishes he had waited a few months before signing the contract. After all, Twitter’s stock price was only $39 on April 1, when Musk announced his stake. Musk has stated his goal is to make the company more valuable than Facebook.
Elon Musk’s $44 billion bid to buy Twitter
The recent news of Elon Musk’s $44 billion bid for Twitter has caused quite a stir. The new CEO has pledged to make massive changes at the San Francisco-based social network. The company has been struggling to grow its advertising business and attract new users. Musk fired the top executives on Thursday and has pledged to make significant changes to the service. As Twitter employees, we’re worried about what this means for the company’s future and whether layoffs are likely.
Elon Musk’s $44 billion bid could leave the company in a vulnerable position. Twitter has faced intense scrutiny over its content and its use by advertisers. Elon Musk has also publicly criticized the company’s executives and mused that the social network is dying.
Terms of the deal
There are many questions surrounding the terms of Elon Musk’s deal with Twitter. Twitter’s lawsuit against Musk is still pending, and the company’s board has yet to respond to Musk’s offer. Some speculate that Twitter may be delaying its response because of concerns that the deal could be a legal ploy.
After Musk’s announcement in July, Twitter’s shares immediately plunged and it was unclear whether the two companies would reach an agreement. The company sued Musk, saying that he had failed to crack down on spam bot accounts. A Delaware court judge scheduled the trial to begin on October 17. On October 27, Musk announced that he was closing the deal, and that he would be taking over as CEO. The announcement resulted in the firing of many Twitter executives.
After Musk’s announcement, Twitter fired a number of executives, including the company’s chief executive, chief financial officer, and a top legal executive. At least one executive was escorted out of the Twitter office on Thursday. The move came after Musk vowed to improve transparency and content moderation.
Elon Musk’s co-investors’ concerns about the deal
Elon Musk’s Twitter deal has raised concerns among US officials and co-investors. The deal would be worth $44 billion, and Musk is currently working to close it. However, a court deadline of 28 October looms. As a result, the deal could still be delayed.
One of the main concerns of lenders is that the deal might be tarnished by fake accounts. In the meantime, a Twitter subpoena has landed on the executive Bob Swan. Swan was one of Musk’s operating partners at Andreessen Horowitz and was involved in finalizing the finance for the deal. Afterward, Musk replaced Swan with Antonio Gracias, a longtime associate of Musk. Neither Swan nor Gracias have responded to requests for comment.
One investor, Steve Jurvetson, a former board member of Tesla and current director of SpaceX, has expressed concerns about the deal. But he did not respond to a request for comment. He said he would seek additional funding for the deal.
Musk’s ambitious goals for Twitter
As Twitter’s future owner, Elon Musk is likely to have ambitious plans for his public forum. His history of running businesses has a few clues to what Twitter could become. Musk has said he wants to charge the government and commercial users for using the platform. He has also noted the need for longer messages. He also wants to make Twitter’s algorithms open source and transparent.
The entrepreneur’s ambitious goals for Twitter include quintupling its revenue by 2028 and reducing its dependence on advertising. His slide deck also shows the company’s projected growth in terms of employees and users. By 2025, Musk plans to have 11,072 employees, compared to 7,500 today.
Impact of the deal on Twitter’s business
Since the announcement of the deal, Twitter employees have been expressing anger and resignation. Despite the turmoil, CEO Elon Musk remained silent. He tweeted, “Buying Twitter is an accelerant to creating X, the everything app.” But, amidst all of this, he has also been tweeting about Russia’s invasion of Ukraine, which has drawn the ire of Ukrainian President Volodymyr Zelenskyy.
Twitter has been successful in bringing content to the world, offering real-time conversations, unique ad formats, and data partner benefits. The company has always looked to improve its business model through partnerships and acquisitions. In 2013, it acquired Crashlytics, a mobile crash reporting application, for US$ 100 million.