The Associated PressApril 15, 2022 09:24:16 IST
Mercury billionaire Elon Musk has now said he wants to buy Twitter directly, taking it personally to restore his promise to what he calls “freedom speech.” But his offer, which seemed flat to investors on Thursday, has raised many questions to answer.
Among them: Is he serious? Can he get money together? Should a sale make shareholders happy? And what will the social platform look like if he succeeds?
Why is Mask interested in Twitter?
Apparently because, he said, the service is not meeting its potential as a “platform for free speech”. Musk insisted he was not interested in making money from Twitter and said on Thursday that his inspiration came from the realization that “it is crucial for the future of civilization to have the most trusted and widely included universal platform”.
Twitter, like other social media platforms, suspends accounts for content violations, including violence, hate speech or harmful misinformation. Donald Trump’s suspension has angered followers of the former president.
Musk described himself as “free speech free” – but blocked Twitter users who questioned or disagreed with him. Regulators have accused its car company, Tesla, of seeking revenge against black workers who spoke out against discrimination.
Where will he get the funds to buy Twitter?
No. And its regulatory filing states that the offer is subject to “completion of the expected financing”.
During a stage interview Thursday at the TED 2022 conference, Musk vaguely stated that he had “sufficient resources” to complete the deal, adding, “I can do this if possible.”
Will he be able to buy Twitter from his personal assets?
According to Musk, he is the richest man in the world Forbes, With a fortune of about $ 265 billion. But most of his money is tied to Tesla stock – he owns about 17 percent of the company, according to Factset, valued at more than 1 trillion – and SpaceX, his privately held space agency. It is unknown at this time what he will do after leaving the post.
“I think it’s going to be a bit painful and I’m not sure I’ll ever be able to achieve that,” Musk said in his Thursday interview.
Musk could sell Tesla stock to raise money – which could hurt Tesla’s share price – or borrow against its stock holdings. But Forbes Note that he has already used more than half of his Tesla shares as collateral.
Would Twitter shareholders be happy with this offer?
The stock traded below its offer price of $ 54.20 per share on Thursday, leaving investors skeptical of the deal. Shares have traded above $ 70 in the last 12 months and peaked at $ 80.75 in February 2021.
Since the departure of co-founder Jack Dorsey in November, a new CEO, Parag Agarwal, has left Twitter for an executive turnover, the initial steps of which have involved internal restructuring. No major changes have been made to Twitter, which has fewer users than its social media rivals such as Facebook and TikTok, despite its external influence due to high-profile celebrity and politician posters as well as a dedicated base of journalists. Musk itself is a huge user, with over 81 million followers.
Dorsey, still a major shareholder, did not indicate what he thought of Musk’s proposal.
Twitter said they would look into the offer. A spokesman declined to say whether the board would defend against an adverse takeover known as the “poison pill”.
What could be Mask’s plan for Twitter?
It’s hard to know with a mask, and even trying to figure out this guy is taking the guy very seriously. Twitter does not appear to be in line with the possibility of a “platform for free speech”, he said, adding that he would reduce content restraint. But he called on the company to crack down on spam accounts, which calls for more restraint.
He proposed removing ads from the service – how ads make money on Twitter – and turning its San Francisco headquarters into a homeless shelter. He seems to have approved a button for editing tweets.
Is the mask a concern?
Social-media companies fight to contain misinformation and hate speech Kasturi, whose tweets could lead to online bullying to shake up his critics online, does not seem keen to moderate the content.
Rachel Foster-Jones, a GlobalData analyst, said: “Regulators around the world will win the potential free speech effect if Musk’s takeover bid is successful.” Speech or misinformation is becoming increasingly muddy, and attempts to change Twitter could easily get these issues out of control. “
In his conversation with Anderson, Musk said that Twitter was “bound by the laws of the country in which it operates, so obviously, there are some restrictions on freedom of speech in the United States and, of course, Twitter must abide by those rules.” However he acknowledged that their numbers were not enough to defeat Trump’s government.
So what’s next?
Scott Kessler, a third-bridge technology, media and telecom analyst, said Twitter could hire bankers and advisers to help review the deal. And other buyers may appear. “It seems that if strategic and / or financial buyers are interested in Twitter, they should probably get involved now.”
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