Tuesday, May 3, 2022
In a move that surprised many, Elon Musk, the world's richest person, announced that he was purchasing Twitter for $44 Billion, equating to $54.20 per share. This could mean big things for the social media platform, which has struggled recently. With Musk at the helm, Twitter could take advantage of his unique skills and background to revive its flagging fortunes. So, what could this mean for users of the platform? And how will Musk's purchase affect Twitter's future and Twitter employees?
Like most people, you use Twitter to keep up with the news and share your thoughts on current events. But what if Twitter became so much more than that? What if it became a platform for business owners and entrepreneurs to share their ideas and connect with potential customers? Elon Musk hopes to achieve this by purchasing the social media company.
On July 27, 2019, US regulators said someone should monitor Elon Musk’s Twitter account. SEC Chairman Jay Clayton argued that the agency had the authority to subpoena Musk about his posts not abiding by online rules and even urged the SEC not to let him get away with tweeting carelessly without consequences!
Elon Musk, the Tesla and SpaceX CEO, has been tweeting about building his own social media platform. Musk disclosed he was giving serious thought to creating a social media company, "the next Twitter."
On April 4th, he bought 9% of Twitter shares which worked out to around $2 billion based on the March 4 share price!
The next day, April 5th, Twitter CEO Parag Agrawal announced that the much-respected and successful technology guru was appointed to Twitter's board in a series of tweets.
On April 10th, Musk announced he would not be joining Twitter’s board.
Elon Musk buys Twitter! The offer was filed with the SEC to purchase Twitter for $43 billion on April 14. Musk disclosed he would pay $54.20 per share to Twitter shareholders and make Twitter a private company.
Twitter announced they had accepted Elon Musk’s $44 billion offer on April 25th. Moments after the news broke that the trading of the company's stock was halted on wall street, Twitter issued a press release confirming that it accepted Musk’s offer to buy Twitter.
Musk's deal to buy Twitter could have promising business growth opportunities by providing a digital market or "digital town square.” Twitter has been a significant player in social media, but with Musk's ownership, it could change drastically.
Maintaining an air of innovation and creative freedom for users while still pushing out new features are two things that might keep Twitter at the forefront as technology evolves rapidly around them. Tackling spam bots and Twitter's algorithm will be a thoughtful and comprehensive process. Still, the Tesla CEO has plenty of experience running a business and will pave a path forward for the social media platform.
With "Free Speech" being the premise for Musk buying Twitter. Musk tweeted he wants to create a digital town square where Twitter users can get together, acting as a functioning democracy to discuss matters vital to the community or nation.
Some fear Elon Musk's takeover will give rise to hate speech because people push the boundary of what free speech means. Could this mean we'll see the return of former President Donald Trump on his personal account?
Will other social media companies take notice of the acquisition and alter their platforms to keep up? It is unclear how purchasing Twitter could impact other social media platforms. The company has yet to prove that its business model will work in the long run. Still, many analysts seem confident enough with all the strategic investment capital coming from principal backers like Morgan Stanley and Bank of America.
It has been reported that Elon Musk is a demanding boss, and Twitter employees may be in for some changes. Some employees are already leaving Twitter over Musk's deal. Some people say he's too hard on them, but others love the work environment because they thrive under pressure!
It's still too early to say what will happen now that Elon Musk owns Twitter. It will be crucial to see how he manages the social media company and its role in his business ventures moving forward. Walibu is excited to see the changes brought to Twitter due to Musk's bid. Keeping up to date with the social network platforms is our specialty. Contact Walibu today!