Amongst them: Is he critical? Can he get the cash collectively? Would a sale make shareholders completely satisfied? And what would the social platform appear like if he succeeds?
Why is Musk concerned about Twitter?
Ostensibly as a result of the service, he says, is not dwelling as much as its potential as a “platform free of charge speech.” Musk insists that he isn’t concerned about creating wealth off Twitter and on Thursday mentioned his motivation sprang from the conclusion that “having a public platform that’s maximally trusted and broadly inclusive is extraordinarily necessary to the way forward for civilization.”
Twitter, like different social media platforms, suspends accounts for violating content material requirements, together with on violence, hate speech or dangerous misinformation. Its suspension of Donald Trump angered the previous president’s followers.
Musk has described himself as a “free speech absolutist” – however he has blocked Twitter customers who query or disagree with him. Regulators have additionally accused his automobile firm, Tesla, of retaliating towards Black employees who spoke up about discrimination.
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Has Musk mentioned the place he’ll get the funds to purchase Twitter?
No. And his regulatory submitting says the supply is topic to “completion of anticipated financing.”
Throughout a Thursday on-stage interview on the TED 2022 convention, Musk famous vaguely that he has “enough property” to finish the deal, including: “I can do it if doable.”
Can he simply purchase Twitter outright from his private wealth?
Musk is the world’s wealthiest man, in response to Forbes, with a virtually $265 billion fortune. However a lot of his cash is tied up in Tesla inventory – he owns about 17% of the corporate, in response to FactSet, which is valued at greater than $1 trillion – and SpaceX, his privately held area firm. It is unclear how a lot money Musk has.
“I do suppose this can be considerably painful and I am unsure that I’ll really be capable to purchase it,” Musk mentioned in his Thursday interview.
Musk might promote Tesla inventory to boost cash – which might damage Tesla’s share worth – or borrow towards his inventory holdings. However Forbes notes that he has already used greater than half of his Tesla stake as mortgage collateral.
Would Twitter shareholders be completely satisfied together with his supply?
The inventory traded decrease than the supply worth of $54.20 a share Thursday, suggesting traders doubt the deal will undergo. The shares have traded above $70 prior to now 12 months and peaked at $80.75 in February 2021.
There was govt turnover since co-founder Jack Dorsey’s departure in November left Twitter with a brand new CEO, Parag Agrawal, whose preliminary actions have concerned inner reorganizations.
There haven’t been any main modifications to Twitter, which, regardless of its outsized affect attributable to high-profile superstar and politician posters, in addition to a loyal base of journalists, has fewer customers than social media rivals like Fb and TikTok. Musk himself is a large consumer, with greater than 81 million followers.
Dorsey, nonetheless a serious shareholder, has not indicated what he thinks of Musk’s supply.
Twitter mentioned solely that it’s going to have a look at the supply. A spokesperson declined to reply if the board will put in place a protection towards a hostile takeover often called a “poison capsule”.
How would possibly Musk remake Twitter?
It is exhausting to know with Musk, and even attempting to recreation out this hypothetical is perhaps taking the person too critically. By saying Twitter just isn’t dwelling as much as its potential to be a “platform free of charge speech,” he appears to be saying he would cut back content material moderation. However he has additionally known as for the corporate to crack down on spam accounts, which means extra moderation.
He proposed dropping advertisements from the service – advertisements are how Twitter makes cash – and making its San Francisco headquarters right into a homeless shelter. He additionally appears to approve of a button to edit tweets.
What issues does Musk as an proprietor of Twitter increase?
Social-media firms battle to include misinformation and hate speech. Musk, whose tweets can lead on-line bullies to swarm his critics on-line, doesn’t appear eager on content material moderation.
“Regulators worldwide can be wincing on the potential free speech implications ought to Musk’s takeover bid succeed,” mentioned GlobalData analyst Rachel Foster-Jones. “Musk is clearly critical about selling free speech for the good thing about democracy, however the line between free speech and hate speech or misinformation is changing into more and more muddied, and makes an attempt to vary Twitter might simply result in these points spiraling uncontrolled.”
In his speak with Anderson, Musk mentioned that Twitter is ” sure by the legal guidelines of the nation it operates in, so clearly there are some limitations on free speech within the U.S. and naturally Twitter must abide by these guidelines.” However he mentioned it was “fairly harmful” to have “tweets be mysteriously promoted and demoted” and having a “black-box algorithm.”
What occurs subsequent?
Twitter could rent bankers and advisers to assist it evaluation the deal, mentioned Third Bridge know-how, media and telecom analyst Scott Kessler. And different patrons might emerge. “It appears that evidently if would-be strategic and/or monetary patrons are concerned about Twitter, they need to in all probability have interaction now.”
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