Elon Musk Twitter Deal Timeline and Process : What effect will this have on users?
Elon Musk, the owner of Tesla and SpaceX is now the owner of the legendary social media platform Twitter. The deal is expected to close by the end of the year. After the approval of the Twitter board, the approval of the regulators and the role of the shareholders will be very important to close the deal. Twitter’s board has also asked shareholders to approve the deal.
In such a situation, many questions must be coming in your mind regarding this deal. For example… why did Elon Musk offer to buy Twitter? What effect will this have on users? When will the deal be completed… what will be the process? From where will Musk raise money for this deal? What changes can be seen in the company with the new boss? Is the revenue of the company expected to increase? What will be the profit and loss for the shareholders from the deal? How was the move of Twitter’s stock in the past? What other companies does Musk own? So let’s find the answer…
Where will Musk raise money for this deal?
Musk said in a new filing to the US Securities and Exchange Commission last week that the funding would be a mix of debt and cash. Investment bank Morgan Stanley and other lenders will provide $13 billion in group debt financing and a $12.5 billion loan against Tesla stock. Will raise $ 21 billion from his pocket. In such a situation, Musk had presented a plan to raise a total of $ 46.5 billion. After the completion of this deal, Twitter will become a private company. Elon Musk will own it as he has not mentioned any co-investors in his statement on Twitter.
When will the deal be completed and what will be the process?
More details about the deal will be revealed when Twitter makes its filing with the US Securities and Exchange Commission. This is known as Form 8-K. Companies typically have four working days to file such filings, so more information may be available by the end of this week.
In the information that has come out so far, it is being said that by the end of this year this deal will be completed and Musk will be the owner of Twitter. However, even after Twitter’s board approves this deal, shareholders’ approval will be required. A date has not yet been set for when the voting for shareholders’ approval will take place.
Why did Musk offer to buy Twitter?
Elon Musk wants Twitter’s ‘extraordinary potential’ to be fully harnessed. He is not very interested in earning from Twitter. Musk has openly said that he wants to create a platform for free speech. Hours before the deal was announced, he tweeted that ‘I hope my critics stay on Twitter too, because that’s what freedom of expression means.’
On March 25 this year, Musk also did a poll on Twitter. The question was, is Twitter following free speech properly? In this poll, 70% of the people answered no. Brand strategist Harish Bijoor said about this deal that data is the new gold in today’s era and Musk has invested in today’s gold by buying Twitter.
What changes can be seen in Twitter in the coming days?
1. Public will work on free speech and algorithms
It is clear from Musk’s statements that after taking command of Twitter in his hands, he will first take steps regarding free speech. Musk just doesn’t believe Twitter handles free speech well. Another change that Musk can make is to make the algorithm public. Whether it’s a March tweet or a TED talk, Musk has made it clear that he thinks Twitter should open-source its algorithms. With the algorithms used by Twitter open, people on the platform will be able to see how Twitter demos or promotes content.
2. Creating a Secure Platform
Elon Musk says crypto scammers are throwing a spambot block party in every thread. Musk himself has become a victim of this. Actually, in the year 2020, the Twitter accounts of many big celebrities were hacked. Musk was also involved in this. The hacker had cheated people in the name of big personalities and companies. Hacked accounts and posted messages
That we want to help you. We will refund you double the value of the dollar value of bitcoin you transfer to our account. For this reason, Musk wants to clean the site and make it safe for users.
3. Subscription Service and Promotion of Crypto
Twitter’s core business model is based on advertising, and Musk wants to change that. Musk says he’s more interested in the subscription model because ads give companies a lot of power on the site. Elon Musk’s interest in cryptocurrencies is not hidden from anyone. In such a situation, they can use this platform to promote payments in cryptocurrencies.
4. Edit button can be found in Twitter
Recently, Musk had asked people on Twitter whether they wanted the edit button? That is, a facility by which a tweet can be edited. 73.6% of the users answered yes to this. The idea of editing tweets has always been opposed by the company’s former CEO Jack Dorsey. Its critics say that if this feature is given, then people can completely change the meaning of their tweets.
Will Twitter’s revenue increase?
It is clear from Elon Musk’s statements that he wants to earn from the subscription model and not from ad revenue. In such a situation, it is difficult to say how successful Musk’s subscription model will be. Whether the revenue will increase or not will have to wait for a while.
What will be the profit and loss for the shareholders?
Under the deal, Twitter will become a private company and shareholders will receive $54.20 per share. Twitter shares closed at $49.68 on Tuesday. Twitter’s stock has been seeing a boom since Musk’s shareholding of 9.2% in Twitter came to light.
Tesla’s market cap slashed after the deal
Tesla’s stock is seeing a decline after the Twitter deal. Tesla shares fell $121.60, or 12.18%, to $876.42 on Tuesday. This reduced the company’s valuation by about $126 billion. At the same time, since April 4, the valuation has decreased by $ 275 billion, which is a drop of about 23%. Musk’s 17% stake in Tesla eroded the value of more than $40 billion.
What effect will this have on people?
By making the algorithm public, people will be able to know how something is trending on the platform. People can get new features like edit button. Freedom of speech can allow people to express their views on the platform with more freedom. You can get a more secure platform. Apart from this, those who have been banned by Twitter in the name of policy violation, they can be returned. Like Twitter banned Donald Trump on January 6, 2021 due to the capital riots.
How big is Twitter?
Twitter is a real-time microblogging platform, launched in July 2006. It was founded by Jack Dorsey, Noah Glass, Evan Williams and Biz Stone. Initially tweets of only 140 characters could be made, however in 2017 this was doubled to 280. Twitter has 217 million active users in the world. It has 77 million users in the US alone. Around 500 million tweets are made every day around the world. Twitter may be a loss-making company, but its indirect value is quite high.
Which companies does Musk own?
Elon Musk is the owner of many companies apart from the electric car company Tesla and the space company SpaceX. Musk also has stakes in Neuralink, The Boring Company and Starlink. Elon Musk’s human computer interface company Neuralink has been working for a long time on such a plan, with the help of which a neural chip can be implanted in people’s brains. With this chip, a person will be able to control any machine without moving, just by thinking. Through this, Musk wants to solve problems like paralysis, hearing, blindness.
Musk founded The Boring Company on December 17, 2016. This company does tunnel work to deal with road jams, rain and storms. The Boring Company is building a high-speed hyperloop for urban traffic in the coming years. With the help of Hyperloop, traveling from one city to another can be done at a fast speed without any hassle. On the other hand, another company of Musk, Starlink Satellite Communication ie Satcom, provides high-speed internet. This Internet service reaches your home directly from satellite.
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