Twitter sells out to Elon Musk for $44 billion
Twitter gave in to Elon Musk's bid to acquire the platform in light of ongoing talks for him to buy it, and he could be seen walking from the table with another corporation for just a fraction of his net worth.
Twitter agreed Monday to be acquired for some $44 billion by Elon Musk, just weeks after the tech giant implemented a policy to prevent a hostile takeover by the billionaire.
The "poison pill" Twitter has proposed to use against Elon Musk's potential hostile takeover is a mechanism with a proven track record that could force the outspoken entrepreneur into negotiations.
The move taken by Twitter follows an offer filed by Musk to purchase 100% of Twitter for $54.20 per share, putting the company's value at $44 billion.
Musk would be paying the same amount he had offered now and would be personally responsible for around half of the financing, with the rest coming via loans from, or arranged by, investment banking company Morgan Stanley. However, it is still unclear whether Musk had managed to secure equity partners for his venture into social media.
When Musk acquires Twitter, it is unlikely that its current CEO, Parag Agrawal, will remain in his position, as the billionaire had previously criticized the company's policies and its current management. However, since Musk is the head of various companies, it is unlikely that he will personally run the platform.
"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 said in a press release.
He also claimed that he wanted to make Twitter "better than ever" by adding new features to the platform, such as making the algorithms open source to boost trust in the company, eliminating spam bots, and authenticating all human users of the platform, a step that is widely considered as a major violation of privacy.
The billionaire's bid was preceded by him hinting on Twitter that he might launch his own social media platform.
It all began with a poll on March 25 on whether or not they believed Twitter rigorously applied to free speech principles, adding that the consequences of the poll will be important and asking them to "vote carefully".
"The Board adopted the Rights Plan following an unsolicited, non-binding proposal to acquire Twitter," the company said in a press release.
Musk had held a TED Talk saying he had an alternative plan to take over the company if the tech giant refused his offer of a whopping $44 billion, though he also cast doubt on the possibility of him being able to perform such a stunt.
"Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy," he said. "What should be done?"
The billionaire who fires workers for criticizing his company's work ethics also proclaimed himself a "free speech absolutist."