The world’s richest person and Tesla CEO Elon Musk on Monday bought Twitter for $ 44 billion (Rs 3.30 lakh crore). The entire deal was done in cash.
With this deal, the management of the Internet media platform, which came into existence 16 years ago, will go into the hands of Musk. The White House did not comment on the deal, but said President Joe Biden is concerned about the power of the Internet media.
At the same time, former President Donald Trump has said that now even if Twitter restores his account, he will not return to this platform.
It is said that a board meeting was also held in this regard on Sunday morning, in which 11 members supported the proposal. Musk presented his financial proposal to Twitter shareholders.
Earlier, Elon Musk had said in a tweet, ‘I hope my worst critics stay on Twitter, because that’s what free speech means.’ Let us tell you that Musk had put a price of $ 4,300 million (Rs 3.22 lakh crore at current price) at a price of $ 54.20 per share and offered to pay in cash.
He had said that for the kind of effective changes that are needed in Twitter, it must first go into private hands. Musk was in talks to buy Twitter in his personal capacity and Tesla was not involved in the deal.
Twitter shares were up 4.5 percent at $51.15 in pre-market trading on the New York Stock Exchange on Monday. The New York Stock Exchange temporarily halted trading of Twitter shares before the deal was announced. Twitter’s share price increased by six percent when trading started again.
Let us tell you that when Musk offered to buy Twitter, the big question was raised whether he had the funds for it. This was followed by reports that several private equity firms expressed their willingness to partner with him.
In this context, he said in the US stock market information last week that Morgan Stanley and other banks have agreed to give him a loan of $ 13 billion. In addition, he will take a loan of $12.5 billion against his stock in Tesla. While it will buy the remaining stake in Twitter through a cash payment of $ 21 billion. Morgan Stanley has also invested in Musk’s electric car company Tesla.
Musk already had a 9.2 percent stake in Twitter:
Elon Musk already had a 9.2 percent stake in Twitter. He was also the largest shareholder of the company. However, a few days ago, asset management firm Vanguard Group surprised everyone by making public the information that it holds 10.3 percent stake in Twitter.
However, this claim could not be confirmed so far. The special thing is that when Musk had proposed to take over Twitter a few days ago, the company’s shareholder and Saudi Prince Alwaleed bin Talal rejected it, saying that the proposed offer was not a fair valuation of the company.
3.2 billion will have to be paid:
According to research firm Equilar, Twitter Inc Chief Executive Officer Parag Agarwal would get about $42 million or Rs 3.2 billion if the holiday happens within 12 months of a change of control at the top level at the social media company.
Parag Agarwal was the first Chief Technology Officer in the company, after which he was made the CEO of the company in November last year. The total value of his damages in 2021 was $30.4 million. However, there has been no response from Twitter regarding this.
Musk does not trust management:
Discussions had raged since morning on Monday that the board was seriously reconsidering Tesla CEO Elon Musk’s proposal to buy Twitter, and the decision came late last night. Elon Musk himself shared the information about the completion of this deal by tweeting.
Let us tell you that on April 14, Elon Musk refused to participate in the company’s board meeting, saying that he does not have confidence in the company’s management.
Musk wants to improve Twitter-
Elon Musk said in a statement announcing the deal, “Freedom of speech is the cornerstone of a functioning democracy, and Twitter is the digital town square where matters important to the future of humanity are debated. I am adding new features to the product.”
I want to make Twitter better than ever by expanding it, making its algorithms open source to build trust, beat spam bots, and authenticate all humans.” “Twitter has tremendous potential. I look forward to working with the company and its community of users,” he said.
Tremendous jump in twitter shares-
According to the report, after the news of talks between the two sides on Sunday, the discussion had intensified that a big decision could be taken on it in a few moments. The Twitter board was expecting more good offers from Musk. Twitter shares rose on Monday amid news of the completion of the deal and closed at $51.60, up 5.5 per cent. But that was still below Musk’s offer price.
The post Elon Musk bought Twitter for 43 billion dollar appeared first on Spotlight 7.
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