Elon Musk Buys 9.2% Twitter Shares — And Days Later, Offers to Buy it All
When the news of Elon Musk’s procurement of 9.2% of Twitter shares hit the streets, it sent shockwaves across social media.
A lot of people just could not believe it was true, especially considering his comments a short while back regarding Twitter’s stance on free speech.
The billionaire CEO of Tesla has on previous occasions been at odds with the Twitter hierarchy and has often been heard to publicly denounce the software companies of Silicone Valley.
Twitter itself has undergone some radical changes in the recent past, especially with the change in CEO, and this might be why Musk sees this as the best time to make a power play if indeed that is his intention.
Whatever his motivations, Musk once again has tongues wagging, with people across the globe wondering what all this means, and news providers are blowing up with what he did next.
Good News or Bad News for Twitter?
The general consensus is that Twitter will no doubt benefit from its new shareholder.
The stock value skyrocketed by 27% when the news of Musk’s acquisition first hit media outlets, reaching a record month-to-month high and figures last seen when the company first went public.
Whether or not this windfall will last is yet to be seen, but if history is anything to go by, then we can be sure that Musk has a larger plan for the future of this social media giant. With his 9.2% shares, he is now the largest shareholder of the company, surpassing even founder Jack Dorsey.
Musk is now in a very good position to acquire more shares, which he obviously wants to do, which will give him controlling power over the direction of the company, and perhaps allow him to make some changes regarding free speech as he has always hinted. With 70% of his 80 million Twitter followers saying this change is long overdue, having Musk at the helm might be just what Twitter needs at the moment.
Benefits to Tesla Motors
The jewel in Elon Musk’s vast empire, Tesla Motors, has always made the best use of Twitter and other social media platforms to propel its various agendas and projects, such as the highly publicized and sometimes controversial SpaceX project. Now with Twitter literally in the palm of his hand, we can expect to see a lot of pro-SpaceX propaganda flooding the site soon.
Tesla has now been given the proper platform from which to grow and evolve, free of the former restrictions that were routinely enforced by the powers that be at Twitter.
Overall Financial Implications
As the saying goes, numbers do not lie, and love him or hate him, the fact of the matter is that Musk’s acquisition of a stake in Twitter has led to the value of the company going up by a staggering $8.5 billion in just a couple of weeks.
Everyone is rushing to join the bandwagon with analysts predicting that the financial outlook for the future of Twitter looks significantly better due to its association with Elon Musk. Any qualms to Musk’s acquisition are purely ideological, with most people agreeing that now is a great time to acquire Twitter shares, even at their suddenly inflated price.
Even though the Twitter hierarchy has categorically made it clear that Musk will not be allowed on the board of directors, it seems only a matter of time for Elon Musk to get what he is after. Anyone who has paid attention to the rise of Tesla, against overwhelming odds, will be under no illusions as to what the man is capable of achieving for Twitter.
The story of Elon Musk and Twitter is just beginning, and only time will tell where it will end. As of April 14th, Mush has offered to buy the social media company for a $41 billion takeover bid. This comes down to a price of $54.20 per share in the cash offer, which puts Twitter at a $43 billion value. In an announcement from Twitter following the offer, the board said it would look at what Musk’s proposal and make a decision based on the best interest of all stockholders.