Elon Musk bought Twitter for $44 billion today, a clear victory for the world’s richest man in acquiring the enormously popular social media network used by world leaders, celebrities, and social influencers all over the world.
Musk agreed to buy Twitter for $54.20 a share, a 38 per cent premium over the company’s share price when he revealed he was the company’s single largest shareholder earlier this month.
In a statement announcing the deal, Musk said, ‘Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,’ Musk went on to say he wants ‘to make Twitter better than ever by enhancing the product with new features.’
According to the New York Times, with data compiled by Dealogic, it would be the largest-ever deal to take a company private in more than two decades.
The historic agreement brings to a close what had appeared to be an implausible effort by Musk, 50, to acquire the social media company — and immediately raises questions about what he would do with the platform and how his actions will impact global online speech, especially since the words ‘free speech’ is more or less subjective nowadays, and not something granted on most social media platforms.
The billionaire, who has over 83 million Twitter followers, has frequently stated that he wants to ‘transform’ the platform by encouraging greater free speech and allowing users more control over what they see. This is likely because Musk has romped around the platform slinging mocking remarks and memes (some of which are hilarious, btw), which is something not appreciated by everyone. Musk could also work on the platform away from the prying eyes of investors, regulators, and others by taking the company private.
The New York Times also pointed out that Twitter is far from the largest social media website. Twitter has over 217 million daily users when compared to Facebook and Instagram’s billions, but it “has had an outsized role in shaping narratives around the world. Political leaders have used it as a megaphone, while companies, celebrities and others have employed it for image-making and brand building.”
Twitter’s chairman Bret Taylor said in a statement that the Twitter board had ‘conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing. The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.’
Musk also tweeted on Monday from his official account: ‘I hope that even my worst critics remain on Twitter, because that is what free speech means.’ However, people are already heading for the hills, looking for a new social media platform to go to, because people and groups that should in our opinion (whilst not naming any names), STAY blocked from the platform, will likely be coming back in droves.
Musk’s plans ‘to make Twitter better than ever’ still remain to be seen. Get ready people, it looks like we’re all in for an interesting ride.
