Breaking - Twitter to Accept Buyout From Elon Musk
Yesterday we wrote that Elon Musk may have a better chance to buy Twitter as details of how he would make this happen, including the financing, were made public. Yesterday, there were discussions between Elon Musk and Twitter's board and it now appears, according to multiple sources, that Elon Musk's bid to buy Twitter has been successful.
Walter Bloomberg Tweeted this morning at 5:30 AM (MST), that Twitter Inc. is poised to accept Elon Musk's $54.20 per share offer to buy Twitter, according to multiple sources. What does this mean for Tesla, Twitter, and for free speech? Will Elon Musk's time now be spent less with Tesla and transitioning the world to sustainable energy?
Twitter stock is up about 4.6% in pre-market trading today. According to sources, there is some kind of provision that will allow Twitter to entertain offers from other people. This is called a "go-shop" provision and would allow other potential acquirers once the deal is set without paying Elon Musk a breakup fee.
The fact that this happened so quickly tells me that the board of Twitter must feel like they can't get a better than $54.20 per share deal from anyone and probably not for the entire company. After all, who has the over $40 billion needed and wants to buy Twitter?
How Much Time Will Elon Musk Spend Improving Twitter?
I think that Elon Musk will divert some of his attention to Twitter. My hope is that this time will not be too much and it won't take away form the important mission that Tesla has. However, I think Elon Musk may have created enough plans at Tesla that he doesn't need to spend as much time there.
For instance, Elon Musk created his Master Plans part 1 and 2 for Tesla and is now working on part 3. With enough detail in his plans and structure in place, it's possible that Tesla will mostly be able to manage and run itself without Elon Musk's intervention.
I think there will be a period of time where Elon Musk is heavily involved with Twitter and working to improve things. There is likely to be some people fired in management and beyond in order to restructure the company to make the kind of change he wants to see happen.
Elon Musk's first goals will likely be to reduce spam from fake accounts and bots, and after that, to better adhere to a platform of complete free speech without "shadow banning" accounts. I think Elon will open source and make public the algorithm for what promotes Tweets and how Twitter will become a platform of free speech for all.
I'm looking forward to seeing the changes, including an edit button - even if the edit only works for 30 seconds after posting a Tweet!
What do you think Elon Musk will do with Twitter? Is this a good decision for him and will it negatively affect Tesla?
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.