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Musk seals $ 44 billion deal for Twitter, promises to defeat spam – SABC News

Elon Musk signed a $ 44 billion cash deal with Twitter Inc. (TWTR.N) on Monday in a deal that will shift control of millions of users and international leaders to the world’s richest man.

This is an important moment for this 16-year-old company, which became one of the most influential public squares in the world and now faces a variety of challenges.

Discussions over the deal, which appeared uncertain last week, escalated over the weekend after Musk asked Twitter shareholders for funding information about his offer.

Under pressure, Twitter began negotiating with Musk to buy the company at a planned price of $ 54.20 per share. Read more

“Freedom of speech is the foundation of a functioning democracy and Twitter is the digital town square where issues that are important to the future of humanity are addressed,” Musk said in a statement.

Shares rose 6% after the news to 51.90 dollars. The deal corresponds to almost 40% of the final price at the closing price the day before Musk announced that he had bought more than a 9% share. Despite that, the offer is below the $ 70 range where Twitter was in business last year.

On Monday, Musk told more than 80 million followers that the company had huge potential and he wanted to make it better by adding new features, making the algorithms an open source to increase trust and overcoming spam improvements.

“I think if the company had been given enough time to transform, we would have earned significantly more than what Musk is offering now,” said Jonathan Boyar, CEO of Boyar Value Group, which owns Twitter.

However, he added, “these transactions strengthen our belief that if the general market does not value companies properly, buyers will eventually do so.

Musk’s move continues the tradition of billionaires acquiring control of influential media outlets, including Rupert Murdoch’s acquisition of the New York Post in 1976 and the Wall Street Journal in 2007 and Jeff Bezos’ acquisition of the Washington Post in 2013.

Elon Musk, CEO of Tesla, speaks to game designer Todd Howard at the E3 Games Conference in Los Angeles.
Illustration shows Elon Musk twitter account and Twitter logo
Tesla CEO Elon Musk talks to game designer Todd Howard at the E3 Games Conference in Los Angeles.

The transaction was approved by the Board of Directors and is now subject to shareholders’ votes. No regulatory barriers are expected, experts said.

Daniel Ives, an expert at Wedbush, said the company’s board had backed “up against the wall” when Musk announced its funding package and no other bidders or white knights appeared.

In a prepared statement, the company said that Musk secured $ 25.5 billion in debt and margin loan financing and provided $ 21 billion in equity.

It was not immediately clear what the winding-up fee would be or who would run the new company.

The importance of Twitter as a mouthpiece for politicians, political dissidents and activists contradicts its relatively small size.

Although only about a tenth the size of much larger social media sites like Meta Platforms Inc (FB.O) Facebook, it has been estimated to have helped the Arab Spring uprising and been accused of taking a role on January 6, 2021, attack on the US capital.

After Twitter banned former President Donald Trump over concerns about inciting violence in the wake of last year’s attack on his supporters in the US Congress, Musk tweeted: “Many will be very unhappy with the high technology in the West as a real dictator of free speech. . ”

Republicans on Monday welcomed news of a possible takeover of Musk on Twitter, betting that Trump would reclaim the service. Read more

Trump, whose company is building a rival to Twitter called Truth Social, said he will not return to Twitter, according to a Fox News interview.

The White House on Monday declined to comment on the deal with Musk, but said President Joe Biden had long been concerned about the power of social media.

“Our concerns are not new,” said White House spokesman Jen Psaki, adding that the forum needs to be held accountable. “The president has long talked about his concern about the power of social media, including Twitter and others, to spread misinformation.

Musk seals $ 44 billion deal for Twitter, promises to defeat spam – SABC News

Source link Musk seals $ 44 billion deal for Twitter, promises to defeat spam – SABC News

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