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When Elon Musk said he was interested in buying Twitter, most skeptics thought that the Tesla CEO was not serious about it. Of course, this was expected because Elon was not the first person to show interest in the company. Other past suitors, including Google’s Alphabet and Disney and Salesforce, had shown interest in the company but never came up with a plan to actualize their dreams.
Alphabet was speculated to be the best fit to buy Twitter because of Google’s dominance in advertising and searches. However, it decided to focus on other ventures while Disney & Salesforce backed out because of the toxic environment and bullying that twitter was going through. It gave Elon, who had been learning how to use macd indicator to buy shares an opportunity to buy it.
Musk had an elaborate plan to acquire Twitter. Firstly, he started his journey by buying a 5% stake in the company in January. He increased his shares to about 9.2% of the company’s stock. At the same time, Musk was in talks with the company leadership about a board seat. He was offered a seat but declined it on April 9. On April 10, he revealed his decision to buy the entity. Investors sued him on April 12, arguing that he failed to disclose the stakes and his intentions and interests in the company on time. Musk spends most of his time using the platform to help him assess and understand its functions.
The Tesla CEO bought the entity at $44 billion, representing a 38% premium above twitter’s closing stock prices the last time the shares were traded on the stock exchange. The purchase means that Twitter will henceforth become a privately owned company, and so its shares will not be traded on the stock exchange as has been the case before.
According to Elon Musk, free speech is important and is the bedrock of any democracy. So he plans to scale up the platform as a square where vital issues to the future of democracy are debated. In addition, he plans to make Twitter better by enhancing its products. Musk plans to add new features, including making its algorithms open source. Besides, he plans to make an authentic platform for humans and defeat the spam bots. He envisages that he will increase trust in the company and unlock its potential.
Elon Musk says that he was more concerned with gaining influence on Twitter and steering the company in the right direction. He also said that he did not have confidence in the company’s management, and his objective was to help improve its service. Earlier, he was offered a seat on the company’s board but found it difficult to use it to change the company. He discovered that a seating board member could neither make a product decision nor tweet suggestions that appear antagonistic to the company executives. So he rejected the seat and decided to buy the company instead.
Twitter employees started getting worried immediately Musk was considered to join the company’s board. They were kept in the dark about the deal and sought guidance from the firm overseeing the stock options on several occasions. There were fears that Musk’s takeover was likely to create bigotry and toxicity rampant at Tesla. The move was likely to push them into a corner and put them in a hostage situation. So what is next on Elon’s list?
Musk is a successful entrepreneur. His journey into buying Twitter offers insight into what investors ought to do when considering investing in any asset. He tactfully started using its products to understand how it works and learn more about the company’s weaknesses. Therefore, he slowly started buying and amassing the company’s shares. His ability to raise $46.5 billion to finance the purchase made the board think positively about the whole deal. It informs us that being transparent about a deal and coming up with a solid strategy while unveiling the reasons for acquiring an asset is a new way of doing things.