After months of negotiation and controversy, finally, the bird flew to a new nest. Elon Musk, CEO and founder of Tesla, Space X, etc., now the new owner of Twitter, has closed the speculations by acquiring Twitter for 44 billion dollars.
Why Elon Musk buy Twitter
Musk is a regular user of Twitter, and he has more than 111 million followers. Despite his likeness to the platform, he criticized it a lot for its policies of revenue generation and content moderation like unfairly suppressing free speech, etc. He also wants Twitter to remove spam and bot accounts from its platform.
How he buys
Before Elon Musk purchased it, Twitter was listed on New York Stock Exchange as a public company. As the company was public in 2013, anyone could buy its share, so Musk also bought its 9.2% stake, which made him the single largest holder of the company. Due to the largest share, he got the right to have a seat on the board of directors, and he also agreed to attend it. But, more than a 10% stake is needed to make decisions at Twitter. Also, Twitter did not allow him to acquire a 14.9% share up to 2024. Hence at the last minute, he rejected the board seat and offered to buy the entire company.
This year in April, Musk offered to buy it completely for 44 million dollars, which makes 54.20 dollars per share, which means existing investors will receive a 38% higher cash payout.
To buy this, he arranged the money from various sources. He sold Tesla at a share of 15.5 billion dollars and some from his personal assets; the rest he managed from other sources.
What Musk does with Twitter after buying
After Musk completely owned Twitter, he twitted on the very first day, “The bird is freed .”Then he terminated the company’s top officers, such as CEO Parag Aggrawal, CFO Ned Segal, and legal affairs and policy chief Vijaya Gadde.
This week, Musk decided to earn money from Twitter’s “blue tick .” He announced that those who want to get the tick blue; have to purchase a monthly subscription, only paying 8 dollars.
Moreover, Musk fired nearly half of Twitter’s employees to minimize expenses. Twitter employees got mail from Twitter- ‘You are fired’ and ‘you are safe.’