The non-impact of what occurs on Twitter stays one of the most well-known social media channels, on Twitter, which may explain why Elon Musk, the richest man in the world, is such a fan.
Even though Twitter, which depends heavily on advertising for most of its revenue, has only made a profit in two of the past ten years, Musk paid an eye-popping $44 billion for the company.
Who is providing the $44 billion purchase price for Twitter by Elon Musk? (Reuters)
There was an old saying, “I liked the shaver so, I bought the firm,” which was used by entrepreneur Victor Kim to promote Remington electric shavers, according to tech journalist and podcast presenter Kara Swisher. Since taking control, Musk
Background
Elon Musk, a business tycoon, posted his first tweet on his personal Twitter account in June 2010, and by April 2022, he had amassed more than 80 million followers.
When a tweet urging Musk to purchase Twitter Inc. was sent in 2017,
Musk responded, “How much is it?”
Musk started tweeting complaints about Twitter on March 24, 2022, asking his followers if they believed that the social media platform upheld the notion that “free expression is important to a functioning democracy.”
Days later, he talked with Twitter co-founder and former CEO Jack Dorsey about the direction of social media. He also considered joining Twitter’s board of directors with Silver Lake co-CEO Ego Durban.
He shared this concept with Twitter CEO Parag Agrawal and board chair Bret Taylor.
Early developments
On January 31, 2022, Musk started buying Twitter shares. He declared on April 4 that he had purchased 9.2% of the company’s shares for a total of $2.64 billion, making him the largest stakeholder.
As soon as the news was released, Twitter’s stock saw its biggest intraday increase since its initial public offering (IPO) in 2013, soaring by as much as 27 percent.
Musk accepted Twitter’s invitation to join the board of directors the following day. The Nominating and Corporate Governance Committee of Twitter had recommended this to the board three days prior.
Several board members expressed concern over possible “adverse implications on investor value.” The position would have prevented Musk from owning more than a 14.9 percent share and restricted his capacity to make public statements.
Elon Musk’s acquisition of Twitter
Elon Musk bought Twitter on April 14, 2022, and kept it until October 27, 2022. Business tycoon Elon Musk began buying shares of Twitter, Inc. in January 2022 and by April of that year.
He had accumulated a 9.1 percent stake in the business, making him the biggest shareholder. Before deciding against it, Musk first accepted Twitter’s invitation to join its board of directors.
On April 14, he made an impromptu bid to purchase the company. The board of Twitter first employed a “poison pill” strategy to thwart a hostile takeover, but on April 25, they unanimously decided to accept Musk’s $44 billion offer.
Musk stated that he planned to increase the platform’s capabilities and open-source algorithms, eliminate sabot accounts and support free expression.
Acquisition announcement
Musk notified Taylor that his offer was “best and final” on April 23, and the next day, Musk urged Taylor to accept in a letter. Subsequently, several media sites reported that Twitter was finalizing its agreement to accept Musk’s offer.
With a deal anticipated to be struck the next day. However, Reuters warned that the agreement may still fall through. Following news that Twitter was prepared to accept Musk’s offer, shares of Twitter increased by 5% on April 25.
The acquisition was approved by Twitter advisors JPMorgan Chase and Goldman Sachs, who both thought it was fair from a financial standpoint.
Twitter’s board officially and unanimously accepted the buyout bid of $44 billion, and upon completion of the transaction in 2022, Twitter was to become a private corporation.
Musk’s withdrawal attempt
On July 8, Musk declared his desire to cancel the planned acquisition, stating in a regulatory filing that Twitter had violated several terms of the deal by refusing to provide information about sabot accounts and high-ranking firing staff.
Taylor responded by pledging to sue Musk in the Delaware Court of Chancery to complete the acquisition. The Twitter board’s transaction committee once more managed the following case.
Next, the news, Twitter’s stock fell by 7% before falling by another 11% the following day. On July 10, Twitter recruited Satchell, Lipton, Rosen & Katz, including “important lawyers” William Savitr and Leo Stride and Potter, to represent its case.
A Description of the changes Elon Musk is making to Twitter
Elon Musk has only run Twitter since late October. However, he has already completely altered the company’s platform.
Nearly immediately after taking over, Musk fired top executives, cut the headcount among the rank and file by 50%, and gave the remaining staff the option of being “hardcore” in their work.
Ethics or quitting sped up the development of features that could generate income, such as charging users to obtain or maintain a verification check mark.
And that was all before he lifted former president Donald Trump’s earlier ban on the app and granted previously banned accounts “amnesty.”
Twitter’s staff has been decimated by Musk’s massive layoffs and strict management style, purportedly including some critical engineering positions, raising concerns about the technological stability of the website.
After meeting Tim Cook and Elon Musk, Apple resumed its Twitter advertising campaigns.
Twitter has always been a little disorganized, but Elon Musk, the company’s new CEO, is taking things to a new level.
Since he paid $44 billion to the company on October 27, he has made significant changes, including firing half the staff while altering moderation procedures and unbanning extremist accounts as the remaining employees try to determine who will be verified.
The most recent information on Musk’s takeover of Twitter is as follows:
Apple reportedly resumes Twitter ad campaigns.
According to Bloomberg, Apple has “fully resumed” its Twitter advertising. The company reportedly spends more than $100 million yearly to advertise on the platform.
According to the Bloomberg story, Musk thanked advertisers for coming back to the site in a tweet following their meeting with Apple CEO Tim Cook.
According to Platformer Zoe Schiffer, Amazon stopped running several Twitter advertising efforts. But, he is reportedly planning to increase ad spending on the platform to $100 million annually.
Neither Twitter nor Apple responded to requests for comment. Amazon declined to comment.
According to researchers, hate speech on Twitter increased after Musk’s takeover.
Researchers contest Musk’s assertion that hate speech has decreased on the platform since he bought the business.
Following Musk’s takeover of the social media platform on October 27, research from the non-profit Center for Countering Digital Hate showed increased offensive language tweets.
The average daily tweet volume from the week before Musk’s takeover and the week preceding Musk’s assertion that hate speech was down were compared by researchers.
The study found that 30,546 tweets contained a slur against Black people, a treble from before Musk took control. During that time, there was a spike in tweets that included slurs directed at Latinos, Jews, gay males, and transgender people.
Researchers took advantage of Brand watch’s social media data.
Musk tweeted that he spoke with the CEO of Apple and tried to reassure brands.
Musk posted on Twitter that he visited the Apple headquarters and met with CEO Tim Cook.
This week, Musk has been critical of Apple. Stating that the corporation restricts speech. Imposes a “hidden 30% tax” on App Store purchases. And threatens to remove Twitter from the App Store if these claims are proven.
After being contacted for comment over Musk’s remark, Apple remained silent.
In a different tweet, Musk added, “Good conversation.” “We cleared up the confusion over Twitter possibly being taken from the App Store, among other things. Tim made it plain that Apple had never given it any thought.”
Musk is trying to reassure businesses that might be hesitant to advertise on Twitter. However, Musk also shared a comment from a Twitter user who noted that brand safety is still one.
The COVID-19 misinformation policy dropped.
Twitter has spent the previous few years battling false information about COVID-19. Whether it was about phony treatments or perilous conspiracy theories concerning vaccines, just like other social media platforms.
But as of November 23, Twitter is no longer enforcing its rule against false COVID-19 information.
The business did this covertly. And it took several days before CNN, Twitter users, and a few other organizations detected the policy update. A request for clarification and further explanation of the policy change received no response from Twitter.
CONCLUSION
The shocking revelation that Elon Musk has been hoarding Twitter Inc. shares surfaced in early April (TWTR: US). Musk was identified as a 9.2% shareholder of the social media site in an SEC filing.
His ownership stake was greater than any board member or company’s creator, Jack Dorsey.
In less than a month, Musk’s actions and potential ambitions for the company dominated news headlines and social media.
The story’s first chapter. Originally covered by 2iQ, concluded with an invitation to join the board of directors from Twitter CEO Parag Agrawal.
Elon Musk announced that he would not join the firm a week after the SEC filing was made public.
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