Elon Musk and Twitter: what is happening and what is its future?
April 2022 was a very newsy month regarding technology, especially because an announcement was made regarding a popular social network and a prestigious businessman: Twitter and Elon Musk. This is how the Tesla and SpaceX executive showed his interest in buying the network for 44 billion dollars. But, what has happened that has not materialized? doWhat has been the development of the facts?
Here’s how it all played out so far:
The Journey of Elon Musk in his purchase
It all started in January 2022, specifically on the 31st. Elon Musk quietly began to build a Twitter engagement.
Elon Musk reveals his willingness to launch a new social media app where freedom of expression is allowed. Musk considered this proposal as an alternative to Twitter because, in his words, it did not meet that premise.
After writing this tweet, many users urged him to buy Twitter instead of creating other platforms.
5th of April
Elon Musk communicated his purchase of 9.2% shares in the social network. He thus became the platform’s largest shareholder for a short period of time.
Elon Musk on April 6
Twitter CEO Parag Agrawal welcomed Musk to the Board. He pointed out that he would contribute a great value to that team, to which Musk noted that he wanted to intervene to significantly improve said network. This generated discomfort in the employees of the social network due to the “revolutionary” ideas of the businessman.
An unexpected turn! Musk decided not to join the Twitter board. CEO Agrawal said they would be open to contributions from Musk, as he was the largest shareholder.
Musk announces the completion of a purchase offer for 100% of the social network, presenting a link to the document of the United States Securities and Exchange Commission, within which he reveals: “my offer is my best and last offer and, if it is not accepted, I would have to reconsider my position as a shareholder. Twitter has extraordinary potential. I’ll unlock it.”
Events after the announcement
- Twitter reported acceptance of Musk’s offer on April 25 after careful study.
- The stock market price of each share is $54.20valuing the social media platform at $44 billion.
- According to Bloomberg sources, the social network decided block changes to your platform. This action is of a preventive nature to make it difficult for employees to execute unauthorized changes.
- Musk on May 13 posted that the deal was “on hold”. It was a way to press the clarification around the number of fake accounts and bots on Twitter.
What is the current situation between Elon Musk and Twitter?
On May 17, Twitter filed new documents with the US Securities and Exchange Commission. Such information contained a detailed timeline of its sale to Elon Musk. It was also specified how each part operated during the deliberations that seemed unlikely until the deal was announced on April 25.
However, beginning in June, the billionaire threatens to cancel the deal because their requests about the fake accounts have not been resolved. Meanwhile, shares of Twitter Inc. fell more than 3% on Monday June 6 in early trading.
What will be the possible future of this social network?
Questions remain as to whether Musk will pull out of the deal. The billionaire stated that the deal is temporarily “on hold”. Twitter is a platform for many social agents. However, as a business, it is an unprofitable venture with unpredictable cash flow.
One of Musk’s slogans and his purchase is the freedom of expression, so there is fear about it. The Tesla CEO hasn’t been shy about sharing thoughts on what needs to be fixed at the site. In short, there is an uncertain future accompanied by declines in the platform’s shares on the stock market. We hope that it is managed under a framework of respect for users in terms of their information and their publications.