Twitter’s Board of Directors and representatives of Elon Musk reportedly worked through the night to hash out the details of Musk’s proposed acquisition of Twitter at $54.20 per share. If the sale goes through, it could be worth $43 billion.
According to the latest from Bloomberg, the Board of Directors unanimously approved the deal worth nearly $44 billion.
Musk’s proposed acquisition of Twitter proved highly controversial among Twitter employees, the media, and the public. Some employees quit and others reported elevations in their stress levels, with many expressing reluctance to effectively work for Elon Musk.
Many people say to create your own social media platform if you don’t like mainstream platforms like Twitter and Facebook. However, Trump’s failure with the “Truth Social” platform may show how difficult that is. Musk may have simply decided that it would be easier, if expensive and controversial, to acquire Twitter.
Some people expressed concern that Elon Musk could order the restoration of Donald Trump’s Twitter account. Trump’s account had been suspended in the wake of the January 6, 2021, riot that took over the U.S. Capitol building for several hours.
Musk hasn’t directly said that he will restore Trump’s account even though he called himself a “free speech absolutist” in the wake of calls to block access to Russian websites through Starlink. (He didn’t block the sites.)
Politicians like Marjorie Taylor Greene celebrated early, saying that some permanently suspended accounts could be restored. It’s still uncertain whether they might be celebrating too early though.
Bloomberg took a slightly different take by suggesting that Musk’s acquisition of Twitter could provide the final death blow to Trump’s “Truth Social” platform. However, a considerable percentage of media outlets weren’t fans.
“Elon Musk Should Have Been Stopped Long Before He Came to Twitter” screamed a Time headline — yes, the same Time Magazine that named Elon Musk its Person of the Year in December 2021.
Elon Musk kicked off the saga by acquiring a slightly more than 9% stake in Twitter. He followed that up with his $43 billion bid to acquire Twitter and showed that he was serious by pinning down as much as $46 billion in funding to secure the deal.
The board of directors offered him a seat at the table. Musk seemed amenable at first, but backtracked when he realized that it came with conditions that would have limited his influence.
Twitter’s board fought back with what was called a “poison pill” — rejecting the bid without consulting shareholders. The “poison pill” would have made it possible for other shareholders to acquire additional shares at a reduced price if Musk acquired more than a 15% stake.
However, the board of directors appears to have backtracked, likely due to feedback from shareholders who may realize that they aren’t likely to receive a better deal. Issues include declining revenue due to a reduced number of human eyeballs on the site despite the millions of active accounts. Many of those accounts may really be bots.
Musk’s stated goals for Twitter include improving “free speech” on the platform by reducing moderation of political viewpoints and eliminating spambots — many of which spread crypto scams.
Crypto scams have been especially irksome, especially in the wake of several prominent accounts belonging to the likes of Musk, Bill Gates, and Barack Obama getting hacked to spread a crypto scam that stole millions of dollars from people who fell for it. The alleged culprits, two Florida residents and a UK resident, were arrested on charges related to the scam.