Analysis by Ian King, business presenter
There must be a good chance Mr Musk will be able to gain control. Not only does it offer a significant premium on Twitter’s share price before it starts investing, but there is no competitive bidding situation here without other prospective buyers on the horizon. In addition, with his “take-it-or-leave-it” approach, Mr. Musk has Twitter, in terminology, in a “bear hug.” Twitter’s board knows that if it leaves, the stock price will fall. And many investors will grab at an attractive offer. The question is, if Mr Musk succeeds, what changes would he make? He has thought in the recent past, for example, about issuing an “authentication check” for premium subscribers. It may also look to move from an ad-based model to making Twitter a subscription-funded business. Another question is whether Mr. Musk intends to try to buy Twitter altogether. With an estimated net worth of $ 265 billion, it can afford it, in theory, except that much of that wealth is tied to Tesla shares. Thus, he may well lend to these shares, using them as collateral, although he could alternatively seek the support of a private equity firm. The big question most Twitter users will have is whether the platform will change character after the acquisition. Twitter’s management – both Mr. Agrawal and former co-founder Jack Dorsey – have worked hard, but not always successfully, to make Twitter a platform where reason is politically motivated. This included the use of moderation policies that many people, possibly including Musk himself, find too harsh. Thus, some will fear that a takeover could lead to more trolling and, perhaps, the lifting of the ban on former US President Donald Trump. These are all questions to which there is no immediate answer. And this lack of clarity will leave many users – and especially Twitter employees – rather nervous.
title: “Elon Musk Offers To Buy Twitter For 41.39Bn As He Says Takeover Needed To Uphold Free Speech Business News " ShowToc: true date: “2022-12-19” author: “Curtis Benitez”
Analysis by Ian King, business presenter
There must be a good chance Mr Musk will be able to gain control. Not only does it offer a significant premium on Twitter’s share price before it starts investing, but there is no competitive bidding situation here without other prospective buyers on the horizon. In addition, with his “take-it-or-leave-it” approach, Mr. Musk has Twitter, in terminology, in a “bear hug.” Twitter’s board knows that if it leaves, the stock price will fall. And many investors will grab at an attractive offer. The question is, if Mr Musk succeeds, what changes would he make? He has thought in the recent past, for example, about issuing an “authentication check” for premium subscribers. It may also look to move from an ad-based model to making Twitter a subscription-funded business. Another question is whether Mr. Musk intends to try to buy Twitter altogether. With an estimated net worth of $ 265 billion, it can afford it, in theory, except that much of that wealth is tied to Tesla shares. Thus, he may well lend to these shares, using them as collateral, although he could alternatively seek the support of a private equity firm. The big question most Twitter users will have is whether the platform will change character after the acquisition. Twitter’s management – both Mr. Agrawal and former co-founder Jack Dorsey – have worked hard, but not always successfully, to make Twitter a platform where reason is politically motivated. This included the use of moderation policies that many people, possibly including Musk himself, find too harsh. Thus, some will fear that a takeover could lead to more trolling and, perhaps, the lifting of the ban on former US President Donald Trump. These are all questions to which there is no immediate answer. And this lack of clarity will leave many users – and especially Twitter employees – rather nervous.
