Twitter won a lawsuit against Elon Musk in October over the cancellation of the proposed acquisition.
A US judge has set an October trial date for the impending legal battle between Twitter and Elon Musk. In fact, the social media giant has accused Tesla’s CEO of leaving his reputation and declining his worth.
A trial date has been set for October.
Musk I announced on July 8 that the announcement was made on the proposed acquisition of Twitter. In response, Twitter said it was about moving forward with the deal in trying to join the lawsuit against Musk. Now a process is underway for October. Chief Justice of Delaware Chancellery Court, Catherine McCormicka statue in favor of Twitter yesterday and an agreement to the company an expedited 5-day process.
Invoice knewTwitter lawyer for watchtelLipton, Rosen & KatzI have stated that a speedy process is necessary to avoid destruction.
I adjusted: “The continuing uncertainty ofElon Musk … do wreaking havoc on Twitter every hour of every day.”
In addition, delaying the trial can lead to complications. Previously fixed companies a “deadline” by which either party could opt out If no deal is finalized by Oct. 24. In addition, debt financing from Musk will expire on April 25, 2023.
Bonus: The Colombian regulator SFC offers a draft regulation of cryptocurrencies.
A poor legal basis for Musk
on his side, Musk failed to find a trial date in February. They are legal in arguing that an earlier date would have given little time for review the necessary information.
Musk and its authorized lawyers Determine the rate of spam or other fraudulent activity on Twitter accounts. It’s been a problem since Musk resign to the agreement in May. at the time, Musk demanded that less than 5% Twitter accounts are proven fake before closing the deal.
The deal was finalized in June after that Musk a I started discussing these plans with the employees that Twitter promised unite “fire hose” by data. However, he argued that the data provided was insufficient and a I declared that I would cancel the agreement on July 8. The legal team of Musk also plan to fight the ongoing lawsuit, according to a July 18 report.
To discover: Dubai launches the Metaverse strategy targeting more than 1,000 web3 companies from 2027.
In short, if Twitter succeeds in the trial, Musk could be liable to a fine of at least $1 million. Or he’s gonna have to close the deal as planned. Yes Musk reach an agreement, Should add cryptocurrency payments to Twitter and work to eliminate crypto scams. For elsewhere, the leading cryptocurrency exchange Binance also backed the deal.
It seemed inevitable, and now, Elon Musk has officially filed a motion with the SEC to cancel his $44 billion acquisition of Twitter, due to Twitter failing to provide accurate information about the number of fake accounts on its platform.
In a letter filed on behalf of Musk and his investment partners at Morgan Stanley, Musk seeks to cancel the acquisition due to a ‘material breach of multiple provisions of the original merger agreement.
According to the presentation:
‘[Twitter] appears to have made false and misleading representations relied upon by Mr. Musk in entering into the Merger Agreement, and is likely to suffer a Material Adverse Effect to the Company (as that term is defined in the Merger Agreement).”
Musk’s team says that despite repeated requests for qualified information, Twitter failed to provide them with the data necessary to make an accurate and true assessment of the number of fake accounts on its platform.
“Although Section 6.4 of the Merger Agreement requires Twitter to provide Mr. Musk and his advisers with all data and information that Mr. Musk requests “for any reasonable business purpose related to the consummation of the transaction,” Twitter does not has fulfilled its contractual obligations. .”
Musk’s team says it has been seeking more information from Twitter for nearly two months, and Twitter is only providing limited access to the required data, in violation of its terms.
“Twitter has sometimes ignored Mr. Musk’s requests, sometimes rejected them for reasons that appear unwarranted, and sometimes claimed to comply while providing Mr. Musk with incomplete or unusable information.”
In all, Musk’s team says that Twitter has provided them with no information about:
- Information related to Twitter’s process to audit the inclusion of spam and fake accounts in mDAU
- Information related to Twitter’s process for identifying and suspending spam and fake accounts
- Daily mDAU measurements for the last eight (8) quarters
- Board Materials Related to Twitter’s mDAU Calculations
- Materials related to the financial condition of Twitter
Because Twitter failed to comply with these requests within a reasonable period of time, that, Musk’s team says, is a violation of the terms of the deal and therefore grounds for canceling the deal.
The letter also notes that Musk’s team is still unconvinced by Twitter’s metrics, with its own analysis of Twitter’s expanded usage data, which it provided last month, showing that fake accounts are more prevalent on the app. from what Twitter says:
“Mr. Musk’s advisers’ preliminary analysis of the information provided by Twitter to date leads Mr. Musk to strongly believe that the proportion of fake and spam accounts included in the reported mDAU count is well above 5%.
Musk’s team also says that based on its conversations with company executives, it understands that Twitter includes accounts that have been suspended within its active user metrics, which it says would see Twitter still including fake and fake accounts. known spam within their publicly reported figures. Musk’s team also says that Twitter’s process for determining the percentage of fake accounts “appears to be arbitrary and ad hoc,” further clouding its metrics.
Based on these ongoing questions, and Twitter’s failure to provide adequate justifications for it, Musk and company want to withdraw, which will now put the onus on the SEC and/or the courts to decide whether the reasoning here is warranted and What. progress, or not, with the merger.
Which could spell disaster for Twitter, which has already cut executive positions and changed its entire business focus, in preparation for a pending acquisition of Musk.
In fact, this week, reports suggested that Twitter CEO Parag Agrawal is ‘willing to go to war’ for Elon Musk to go ahead with his takeover offer, even if Musk seeks to withdraw from the process. Agrawal would personally get a big payday if the Musk deal went through, but more than that, the fact that the deal falls apart now would raise major questions about the future of Twitter and its ability, as a business, to become a more viable business. valuable proposition.
The general consensus so far has been that Musk will ultimately have to go ahead with his Twitter acquisition push either way, because Musk waived several due diligence measures in his initial offer, in order to expedite the transaction.
But in today’s letter, the Musk team has also provided a note of clarity on this point:
“Despite public speculation on this point, Mr. Musk did not waive his right to review Twitter data and information simply because he chose not to seek this data and information prior to entering into the Merger Agreement. In fact, he negotiated the access and information rights within the Merger Agreement precisely so that he could review data and information that is important to Twitter’s business before funding and completing the transaction.”
It seems, then, that a showdown is brewing, with Musk now making the move that many expected, which will force Twitter to respond and provide a detailed explanation of it to the SEC.
Twitter board chairman Bret Taylor was quick to respond to the news:
Twitter’s board is committed to closing the transaction at the price and terms agreed with Musk and plans to take legal action to enforce the merger agreement. We are confident that we will prevail in the Delaware Court of Chancery.
—Bret Taylor (@btaylor) July 8, 2022
Will Musk be able to get out of the deal, or will Twitter be able to force Musk to pay, under the terms of the deal?
It looks like things are about to get really ugly, which can only be bad for Twitter as a business.
Elon Muskthe richest man in the world and self-proclaimed governor general, has announced his strong support for the leading cryptocurrency doecoin. Recently, he and his company faced a class action lawsuit for leading a fraud scheme. Ponzi Linked to doecoin.
Musk will continue to support doecoin.
The Tesla CEO seems determined to support DOGE, based on his recent tweet. Also, he was recently involved in a class action lawsuit for manipulating the price of coins. same and ran a Ponzi scheme. A Twitter user asked Musk if you keep buying doecointo which he replied: ” I am it. This Sunday he tweeted that he would continue to support DOGE.
I will continue to support Dogecoin
— Elon Musk (@elonmusk) June 19, 2022
Musk is known to promote doecoinand the lawsuit cites some of his most popular Doge tweets. This after a satirical article aroused his interest in the work. same in 2019. The plaintiffs seek a ban on Musk and your company to promote doecoin. However the father dog self-proclaimed saidhe would support the work memes in any case.
To find out: The Fed has mentioned stablecoin risks to financial stability and calls for regulators to intervene.
DespiteElon Musk won’t be fully active in the cryptocurrency space until 2021, his first tweet on doecoin dates back to April 2019, when he shared a same dog with the caption ” doecoin rülz“. In 2021, the CEO of Tesla is became one of the biggest influencers in the space crypto. Since then, when the billionaire speaks, crypto investors listen and prices rise and fall based on the uptrend of his tweets.
Elon Musk became a staunch supporter of doecoin after complaining The impact of Bitcoin on the environment. He started tweeting about it. memecurrencyand the price tends to react accordingly. Last month, the billionaire announced that users could use DOGE to buy products You’re thereand SpaceX will soon follow. Minutes after the announcement, doecoin jumped 15%.
Focus on the lawsuit filed against Musk
US investor DOGE Keith Johnson sued legal action against Musk and his companies Tesla and SpaceX. Johnson accuses them of defrauding and setting up a pyramid scheme to manipulate the price of doecoin.
The complaint alleges that the constant tweets and responses of Musk describe him as a huge fan of cryptocurrencies. This will cause the price of the coin to skyrocket and investors will lose all of their funds when market conditions change.
The Claimant stated: “The defendants knew since 2019 that doecoin I did not have value but promoted doecoin to profit from your business.Musk used his pedestal as the richest man in the world to exploit and manipulate the pyramid scheme doecoin for profit, exhibition and fun.
For more information about the trial version, click here.
It’s already been six weeks since the Twitter Board agreed on a Elon Musk’s $44 Billion Hostile Takeover Offer: So Where Do Things Stand at This Stage?
After much speculation, it now appears that Musk is looking to pull out of the deal altogether, according to a new SEC filing.
In a letter sent to Twitter Counsel Vijaya Gadde, Musk’s team, has claimed that Twitter has violated the terms of the acquisition agreement by refusing to provide more information about the number of fake profiles on its platform, which Twitter pegs at 5% of its active user count. Musk himself has publicly disputed this figure, and now appears to be looking to use this as a means of withdrawing from his takeover bid.
According to the SEC note:
“Based on Twitter’s behavior to date, and the company’s latest correspondence in particular, Musk believes the company is actively resisting and thwarting his information rights (and corresponding company obligations) under the merger agreement. . This is a clear material breach of Twitter’s obligations under the merger agreement and Mr. Musk reserves all resulting rights, including his right not to consume the transaction and his right to terminate the merger agreement.”
Musk’s team says that despite repeated requests, Twitter has refused to elaborate on this 5% figure, which Musk believes is too low to be accurate. Musk’s team argues that the accuracy of this data is critical to securing the financing of Elon’s Twitter bid, and if Twitter cannot provide further details to bolster this figure, that would amount to a breach of the terms of the deal, which which would allow Musk to get out of his acquisition drive.
Which is not exactly how Twitter sees it.
Twitter has argued that its 5% fake profile figure is accurate, based on its own sampling and reporting, through processes that have been accepted by the SEC in the past, and as such, that should be the number agreed to under the terms. of the agreement. .
In response to Musk’s latest SEC letterTwitter has continued to maintain its position on this front:
“Twitter has and will continue to cooperatively share information with Mr. Musk to complete the transaction in accordance with the terms of the merger agreement. We believe that this deal is in the best interest of all shareholders. We intend to close the transaction and enforce the merger agreement at the agreed price and terms.”
So can Musk really back out of the deal if he sticks to the argument that Twitter’s fake profile counts aren’t correct?
In his initial push to speed up his deal with Twitter, Musk resigned from several due diligence measures to speed up his acquisition of the app, while there is a billion-dollar break clause built into the terms of the deal that Musk would have to pay, one way or another. But most pundits seem stumped as to whether Musk could use this clause as a deal-breaker, largely because, in reality, Musk is probably right, and there are probably a lot more fake accounts and bots active on Twitter than ever before. that the company recognizes.
Huge botnets have been spotted in the past, including some spanning 500,000 fake accounts within a single group. back in 2019, cabling reported that bot profiles dominated political news streams, with bot profiles contributing up to 60% of tweet activity around some events, while in 2017, researchers at the The University of Southern California and Indiana University found that around 48 million Twitter accounts were automated, which is equivalent to 15% of active Twitter accounts.
Despite these findings, Twitter has consistently maintained that only 5% of accounts on its platform are fake, and that number has remained static since the company went public in 2013.
Which seems unlikely, right? I mean, how can that figure remain static all the time?
Based on this, and the fact that Twitter’s ad business relies on the accuracy of its audience reach data, Musk seems right to argue that if Twitter can’t provide more precise numbers or a better explanation of your assessment, then that’s a breach of the terms of the deal.
Musk has likened this to buying a house that turns out to be infested with termites.
“It sounds like you’re saying, ‘Okay, I agree to buy your house.’ You say the house has less than 5% termites. That is an acceptable number. But if it turns out that 90% are termites, that’s not right. It is not the same house.
Twitter is not 90% bots, but the analogy makes sense. And given that this is Elon Musk, the richest person in the world, there might well be a way for his team to discuss a way out of the deal, if they so choose.
But it won’t be easy.
Again, Twitter will seek to enforce the terms of the deal, including items Musk has waived, and it will likely require many months of legal proceedings to come to a conclusion on whether Musk should pay.
Which would be disastrous for the company. The stress and uncertainty of the deal has already led to several senior executives leaving the company, along with many other staff members, and he can only imagine that a protracted legal battle will further exacerbate the situation.
But it looks like that’s where things are headed, with Musk refusing to pay and Twitter refusing to elaborate, possibly because it can’t possibly accept Musk’s team accepting it.
Which could lead to a big mess at Twitter headquarters and ongoing problems for the company, in almost every way. That will derail future plans, slow down development and change the focus of the app.
Any way you look at it, anything short of a Musk acquisition will now leave Twitter with a significant mess to manage in the interim or deal with the fallout.
What comes next is unclear, but six weeks later, we’re still nowhere near a conclusion to Elon Musk’s Twitter takeover drama.
The co-founder of doecoinJackson Palmer recently launched a podcast titled “ Griftonomics“. Palmer also expressed concern about the “normalization of scams” in the crypto industry. In addition, he rated Elon Musk and other cryptocurrency promoters of “thieves“.
Palmer says that the cryptocurrency industry has a number of scammers, including Elon Musk.
Jackson Palmer is an Australian-born software developer who created doecoina cryptocurrency based on memes which has quickly become one of the most valuable digital currencies in the world. He stopped working on cryptocurrencies in 2015 and has been opposed to the technology ever since.
The co-founder of doecoin recently launched a new podcast, Griftonomicsto coincide with a recent interview with the associate editor of CrikeyCameron Wilson. qualified palm tree Elon Musk thief I didn’t know how to run the basic code. Elon Musk promoted doecoin several times as part of his tricks Y shitposts free wheel Among others, the recent mention of memecurrency this week has reinforced its value.
He stated: ” Elon contacted me for this script, and it soon became apparent that he didn’t understand the coding as well as he claimed. He has asked: “How can I run this python script?”
See Also: MoneyGram Turns to Stellar to Launch Stable-to-Fiat Currency Conversion Service.
Palmer sees attempts to Musk on Twitter as a strategy to destroy the platform or at least further reduce its value. He pointed to the billionaire’s frequent criticism. including amplifying some of the more cynical criticism on the platform: as evidence from the announcement of the takeover bid.
In addition, he also attacked clive palmerAustralian businessman and politician and Australian politician pauline Hansoncalling them “lying politicians”.
When asked by an interviewer about the downward trend in prices, the co-founder of doecoin he refused to call it “crypto winter”. It happens periodically, he said, when cryptocurrency promoters arrive and wait. “a new batch of fools”.
Many have expressed concern.
This is not the first time that big names have cared about the culture of the crypto industry. Last July, the co-founder ofEthereal, antonio di iorioabandoned the cryptocurrency and raised concerns about its safety.
Andrew Timeknown for his work on the ecosystem Ghost Y Yearn Finance, also recently called for the regulation of cryptocurrencies. Nevertheless, Time quickly resurfaced and criticized the culture crypto Current.
To read: To see: The Parliament of Portugal rejects 2 bills on the taxation of cryptocurrencies.
In a surprising turn of events, Elon Musk now appears poised to become the sole owner of Twitter, after Twitter’s board of directors was set to vote over the weekend to accept his $44 billion takeover offer. .
Initially, it appeared that Twitter would rebuke Musk’s offer, even initiating a ‘poison pill’ mitigation process to prevent Musk from acquiring the company through a stock purchase. But Twitter’s board of directors reportedly ultimately felt they had no choice but to accept the billionaire’s offer, meaning that Elon himself will now be the one to set the rules and greenlight the way forward for the platform.
So what does that mean?
Well, no one knows for sure, probably not even Musk himself, who recently admitted that he’s still working on his plans.
But we do have some pretty clear pointers about Musk’s intentions, ranging from restoring “free speech” to fighting bots.
Here’s a look at Musk’s key areas of focus, based on his public statements so far, and how he might address each one.
Restoring freedom of expression
Free speech has become the main focus of the Musk-Twitter push, with the Tesla owner publicly denouncing Twitter’s past actions to silence certain users.
Since Twitter functions as the de facto public square, failing to adhere to the principles of free expression fundamentally undermines democracy.
What should be done? https://t.co/aPS9ycji37
— Elon Musk (@elonmusk) March 26, 2022
Musk also has criticized Twitter’s decision to veto former US President Donald Trumpwhile he has also had his own number of problems related to his comments and statements on Twitter.
Will Twitter take a different approach under Musk?
You have to suspect that it will, but how, exactly, that will look is anyone’s guess.
Musk’s main argument here is that by making Twitter privately owned, that will allow him to be more free in what he allows, since he won’t be beholden to shareholders or advertisers in this regard.
But ads, of course, are Twitter’s biggest moneymaker: Looking at Twitter’s Q4 2021 results, ad sales made up the vast majority of Twitter’s revenue.
On the other hand, under private ownership, Twitter will not be under the same revenue pressures, in terms of increasing revenue and improving performance in line with shareholder expectations. But Elon is still paying $44 billion for the company. I would assume that you would like to recoup at least part of that expense.
So what would be a profitable revenue target for the platform?
Looking at Twitter’s numbers, it’s still paying some hefty operating costs, with the company reporting an operating loss of $493 million for fiscal 2021.
That means that while Twitter generated $5.08 billion in revenue for the year, it actually paid $5.5 billion in costs.
Some of these expenses were one-offs (such as a ‘one-time net charge related to $766 million litigation’ due to a shareholder class action lawsuit), but breaking them down into individual items, some of Twitter’s key costs for 2021 were:
- Research and development: $1.2 billion
- Sales and marketing: $1.2 billion
- General and Administrative – $584 million
Factoring in cloud and other infrastructure costs, you’re looking at a baseline operating cost of at least $3b-$4b, so at a minimum Musk will need to generate at least that to avoid costing you money, and no ads. It will be a difficult question.
So how will Musk do it?
I suspect this is the answer:
Musk’s view is that by authenticating real people and giving them a check mark, that will lessen the impact of bots (another of his key focus points) and force people to pay for Twitter Blue, at $3 per month, it could be the way he does it.
But would people really pay for Twitter? Does anyone really need the app enough to justify a $3 per month charge?
Right now, very few people are signing up for Twitter Blue, with the lure of some custom color options and ‘undo tweets’ not really moving the needle for regular users.
But if Musk cut everyone off unless they paid the fee, maybe that would get more people to actually pay, and if a lot of prominent users ended up paying, that would entice others to sign up, so you wouldn’t miss a thing.
Twitter currently has 217 million daily active users, which, if each paid $3 per month, would bring $7.8 billion in annual app revenue. Of course, not all of these users are going to pay, but I also suspect that Twitter is actually a very important tool for those who use it, even if its user count pales in comparison to Facebook or Instagram.
Let’s say only half of these people sign up; That’s still $3.4 billion in annual revenue, no ads, and with Musk also promising to cut costs, whether it’s getting rid of Twitter’s San Francisco headquarters or eliminating board member pay, there could be ways. to make this a working option.
But it would be a big risk. If Elon decided to block all non-paying users, that could also cause conversations to move to other free networks, potentially leaving Twitter with nothing and reducing its $44 billion investment to zero very quickly.
But I do think it could work, and if Musk can too add new features, as it saysTo make that $3 monthly investment even better, Twitter could very quickly become a hub for more engaged, active, and responsible conversations. And as I say, I suspect that a lot of people in the media, at least, would be willing to pay to participate in that group chat.
This is the kind of bet I think Musk will make, and while it could reduce Twitter’s presence in the social media sphere, by shrinking its user base, it could still ensure that it remains a relevant and valuable entity, and potentially profitable. for Musk in the long run.
And ultimately, that could also be Musk’s path to free speech. With every user registered and accountable, and only paying users allowed to enter the app, that puts more responsibility on each contributor, while trolls couldn’t easily create new accounts just to attack and harass others.
It would be free speech with responsibility, which may not be exactly what free speech advocates have been calling for. But it appears to be one of the only viable ways for Musk to achieve some of his key goals stated here.
Algorithm open source
Another element of Musk’s Twitter takeover push has been algorithmic transparency and giving users the opportunity to understand, and even control, how the system decides what’s most relevant to them.
According to Musk:
“Any changes to people’s tweets, whether or not they’re emphasized, that action needs to be made apparent, so that anyone can see that that action was taken, so that there’s no kind of behind-the-scenes manipulation, whether it’s algorithmic.” or manually. .”
Twitter is already exploring through its blue sky initiativeand the concept that regular users might have a better understanding of such systems makes sense, though the complexities may be lost on us non-coders and regular people (i.e. the vast majority of Twitter users) who we just want to see the latest tweets.
A key risk on this front is that by opening up its algorithmic parameters, Twitter would allow users to identify key aspects that they may or may not want to emphasize within their experience. Which makes sense, for example, to remove mentions of ‘The Kardashians’ from your feed, but what if you wanted to remove ‘liberal bias’ or other elements that might contribute to the echo chamber effect?
It could also lead to new qualifiers being integrated into algorithms that may not deliver pleasing or even legal results.
TikTok, for example, has faced criticism in the past for their efforts to suppress posts from users with ‘bad teeth’, ‘big bellies’, physical disabilities and more. The fact that this is even possible suggests that TikTok’s system can categorize content based on such parameters, and with those kinds of options in place, that could lead to some worrying use cases in the app.
It’s not an easy road, and Musk will have a lot of work to do on this front, but again, Twitter is already moving down this path, and Musk’s momentum will likely see the bluesky project develop much faster.
Musk is also interested in weeding out bots, for which, as noted above, a new checkmark system for all users could help in many ways.
If our Twitter bid is successful, we will either beat the spam bots or die trying.
— Elon Musk (@elonmusk) April 21, 2022
Twitter has been working to address its bot issues for years, though the feeling is that it could do more, with bot accounts seemingly easy to identify for most users.
The question in the past has been whether Twitter really wants to address bots or whether it is more beneficial for the platform to continue to count them as ‘active users’. With market pressure on Twitter to increase usage numbers, perhaps turning a blind eye to some of these bot profiles will help shore up those numbers.
Going private removes that emphasis and Twitter could, at least theoretically, now crack down on bot accounts.
It looks like Musk will push for that, and it’s another area that Twitter has been developing, while a shift towards more accountability for all human users will, again, be beneficial here.
These are the three key pillars of Musk’s Twitter push, or at least the ones we know about so far, and it looks like these will be the focal points of his platform’s leadership when he takes over the app.
Which could be soon, and while the deal is still subject to various approvals and processes, it looks like we’ll find out very quickly what Musk’s plans are for the app.
Well, I don’t think anyone saw that coming, not in a realistic sense at least.
But obviously Elon Musk is serious about his efforts to better align Twitter with free speech principles, with Tesla’s billionaire CEO offering a hostile $43 billion takeover bid for the app.
According to Musk’s SEC memo:
“I invested in Twitter because I believe in its potential to be the platform for free speech around the world, and I believe that free speech is a societal imperative for a functioning democracy. However, since making my investment, I now realize that the business will not thrive or serve this societal imperative in its current form.
Musk has been to staunch supporter of freedom of expressionand has often criticized Twitter’s moderation efforts, including its decision to ban former US President Donald Trump.
Last week, before it was revealed that Musk was buying Twitter stock (which he’s been steadily accumulating since January), Musk noted that Twitter needed to adhere to “free speech principles” to truly serve its purpose.
Since Twitter serves as the city’s de facto public square, failure to uphold the principles of free speech fundamentally undermines democracy.
What should be done? https://t.co/aPS9ycji37
— Elon Musk (@elonmusk) March 26, 2022
That’s apparently the impetus for Musk’s takeover bid, with Musk now outlining a vague plan to make Twitter privately owned, to reduce its dependence on shareholders and advertising dollars, allowing it thus to make truly independent decisions for the good of public debate.
“I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium to the day before my investment in Twitter and a 38% premium to the day before the announcement my investment. My offer is my best and last offer and if it is not accepted, I will have to reconsider my position as a shareholder.
Market analysts say Musk’s bid is low, given that Twitter shares recently hit $70. But it could still be tempting, and it’s enough to at least be taken seriously as a legitimate takeover bid.
If Musk’s takeover offer is accepted, Twitter will likely see significant changes, and really, all bets are off as to what happens to the app next. But if the offer is rejected, Musk hinted that he would likely retire from the business altogether.
“If the deal doesn’t work out, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I will have to reconsider my position as a shareholder. It’s not a threat, it’s just not a good investment without the changes that need to be made.
It will be interesting to see if this also includes Musk removing his twitter accountwhich currently has over 81 million followers, and is a key media tool for the sometimes eccentric billionaire.
Following the revelation that Musk had become Twitter’s largest individual shareholder earlier in the month (until Vanguard Group bought more shares to overtake him), Musk began polling his Twitter followers with questions about how to “fix” the platform. Musk was then reportedly advised to stop tweeting critical comments, as a pending Twitter board member, which later led to Musk withdrawing his interest in joining the board entirely.
It appears Musk was unhappy with the response he received from Twitter management, as he is now looking to wholesale replace them and start afresh with the company.
It’s an extraordinary move, and one that again raises questions about the disproportionate power of the billionaire class. Former Amazon CEO Jeff Bezos, for example, owns the Washington Post, and some have suggested he is now more supportive of Bezos’ positions in his editorial coverage (note: independent studies have found little or no evidence of bias in Post reporting since Bezos’ acquisition).
Meta CEO Mark Zuckerberg wields significant power as the owner of several of the most widely used social media apps, while Apple and Google, although not independently controlled by a single wealthy founder of the Similarly, can also exercise a level of control over the reach of media through their heavily used digital properties.
In Musk’s case, he clearly doesn’t like what Twitter is doing, and being wealthy enough as he is, he’s looking to do something about it, which could have far-reaching consequences, in many ways.
Overall, I’d say the likelihood of Musk’s takeover offer being accepted is not high – but again, I never would have guessed that Musk would make such an aggressive push into Twitter shares, or even that it would go into hostile takeover mode for the application.
So who knows how it goes? In some ways, it seems like just enough of an offer to be taken seriously, but not enough to actually be accepted.
But maybe Twitter will become “Tesla Social,” and memes and jokes about “420” (note Musk’s bid price) and all the other “edgelord” trends will dominate in this new sewer led by “freedom of expression”.
It’s pretty ominous to think about – but maybe it could happen, which could spell the end of Twitter as we know it.