Not that it wasn’t evident from the get-go, but Elon Musk just dropped the bomb by showing the world just how serious he was about better aligning Twitter with free speech principles. The billionaire Tesla CEO offered a full $43 billion hostile takeover bid for the app.
“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy. However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form.”
Prior to Musk candidly buying 9.2% of Twitter shares last week, he did state that Twitter needs to adhere to ‘free speech principles’ to be able to fulfill its purpose. This is seemingly the impetus behind Musk’s takeover bid, with Musk now outlining a somewhat vague plan to take Twitter into private ownership, reducing its reliance on shareholders and ad dollars. This will allow Twitter more independence when it comes to decision-making for the good of public debate.
In what’s no less than a hard-flex show of intention, Musk said:
“I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter, and a 38% premium over the day before my investment was publicly announced. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.”
Though market analysts say that this offer is, in fact, low (Twitter shares recently reached $70), it’s still a tempting offer and is enough to at least be taken seriously as a legitimate takeover bid. If accepted, then Twitter is bound to undergo significant changes, wiping the slate clean as to what’ll happen to the app. Not without his fallbacks, Musk also notes that he’ll likely fully withdraw from the company should his bid be rejected. Truly an ultimatum; well played Mr. Musk.
It’ll be interesting to see if this includes Musk deleting his Twitter account, which currently has 81 million followers and serves as a key media tool for the rather eccentric billionaire. It would seem that Musk was dissatisfied with management’s response when he proceeded to poll his followers, questioning them how he could better ‘fix’ the platform. Now, Musk seems to be keen on replacing the entire Tweet team wholesale as he attempts to bring the company under his wing.
It’s an extraordinary move and one that raises questions about the seemingly disproportionate power of billionaires. Former Amazon CEO Jeff Bezos now owns The Washington Post and Meta CEO Mark Zuckerberg holds significant power as owner of several of the most used social apps. Apple and Google, likewise, have a major hold on certain media reach through their digital properties.
The Wrap
At least in Musk’s case, he clearly dislikes how Twitter presently operates and looks to do something about it personally, which, in this case, he does through the help of his excessive wealth. In some ways, such a takeover could have many consequences, but it could also prove pivotal for Twitter’s history.
Though the likelihood of Musk’s offer being accepted isn’t even a solid 50-50, there’s no telling how this one will play out. ‘Tesla Social’ does sound like something, but it could also very much lead to an end to Twitter as we know it.
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