Elon Musk's $44 billion Twitter takeover: Is it a done deal or unfinished business?

On Monday, the information broke that Tesla CEO and world's richest man Elon Musk had agreed a deal to purchase Twitter.

The social media platform's board of administrators agreed to Musk's bid at a worth of $54.20 (€50.76) per share - a complete of $44 billion (€41.05 billion) - for 100 per cent management of the corporate.

Any takeover will likely be topic to due diligence on Musk's aspect, and on the present Twitter shareholders voting to promote their stakes for the value he is providing.

If the corporate's shareholders conform to promote their stakes then Twitter, which has been a publicly-traded firm since 2013, will revert to non-public possession with Musk in cost.

This is what might occur subsequent.

What Elon Musk needs

In an announcement saying the acquisition, Musk emphasised his dedication to free speech, calling it the "bedrock of a functioning democracy".

"Twitter is the digital city sq. the place issues very important to the way forward for humanity are debated," he added.

Whereas particulars are skinny, Musk hinted at some potential future modifications, together with making Twitter's algorithms public to extend the platform's transparency.

A possible main change might come by his said objective of "defeating the spam bots, and authenticating all people". This might imply that Twitter customers should present an ID to make use of the service - one thing the corporate has beforehand stated wouldn't assist to sort out abuse and harassment.

“This transfer simply reveals how efficient (moderation options) have been to bother these in energy,” stated Kirsten Martin, a professor of know-how ethics on the College of Notre Dame within the US.

"I might be frightened as to how this could change Twitter’s values," she stated.

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I hope that even my worst critics stay on Twitter, as a result of that's what free speech means

— Elon Musk (@elonmusk) April 25, 2022

Underneath self-described "free-speech absolutist" Musk, Twitter might additionally loosen its content material moderation insurance policies, a transfer that raises the prospect of the platform undoing its highest-profile ban.

Requested throughout a current TED interview if there have been any limits to his notion of "free speech," Musk stated Twitter would abide by nationwide legal guidelines that limit speech all over the world. Past that, he stated, he’d be "very reluctant" to delete posts or completely ban customers who violate the corporate's guidelines.

"I feel we wish it to essentially have the notion and actuality that speech is as free as fairly attainable," he stated.

Will Donald Trump return to Twitter?

Musk's views on banning customers might open the door to a comeback for former US president Donald Trump, a prolific and high-profile Twitter consumer with virtually 90 million followers on the time he was banned from the platform in January 2021.

Donald Trump's Twitter ban drove him to start out his personal social media platformAP Picture

Trump's everlasting suspension got here two days after the Capitol riots, the place supporters of the Republican president attacked police on the seat of America's legislative department.

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I'm not happening Twitter, I'm going to remain on Reality

Donald Trump

Former US president

Trump's ban was because of "the danger of additional incitement of violence," Twitter stated on the time.

Trump himself has stated he will not return, telling US media on Monday that he was dedicated to his personal troubled platform, Reality Social.

"I'm not happening Twitter, I'm going to remain on Reality," Trump informed Fox Information.

"I hope Elon buys Twitter as a result of he’ll make enhancements to it and he is an effective man, however I'm going to be staying on Reality," he stated.

Issues inside Twitter

The Trump query was considered one of many who went unanswered throughout an inside, company-wide convention name for Twitter employees on Monday.

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Many at Twitter now face a probable proprietor who has publicly belittled them, their households, their pals, or their communities

Twitter worker

Hours after the phrases of Musk's settlement with Twitter had been introduced, employees reportedly requested CEO Parag Agrawal whether or not they would lose their jobs, and whether or not the platform's moderation insurance policies would change.

"As soon as the deal closes, we do not know which course the platform will go," Agrawal stated, responding to a query concerning Trump.

"I imagine when we've got a chance to talk with Elon, it is a query we should always handle with him."

Agrawal additionally informed workers there have been no plans for layoffs, with Bret Taylor, chair of Twitter's board of administrators, trying to reassure workers that the settlement with Musk prioritised "working continuity" till the deal was closed.

Twitter CEO Parag AgrawalTwitter / Canva

Nonetheless, the Twitter CEO additionally conceded that the platform's future regarded "unsure" following the completion of Musk's bid.

Some employees have already taken to Twitter to air their disapproval of Musk's takeover in public, elevating the prospect that the corporate might see a wave of exits if the deal goes by.

"Many at Twitter now face a probable proprietor who has publicly belittled them, their households, their pals, or their communities - not not like a schoolyard bully," one senior engineering supervisor wrote.

Jack Dorsey approves

However Twitter co-founder, board member and former CEO Jack Dorsey signalled his approval of the Musk buyout on Monday, saying it meant taking the corporate "again from Wall Road".

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Elon’s objective of making a platform that's “maximally trusted and broadly inclusive” is the best one. That is additionally @paraga’s objective, and why I selected him. Thanks each for getting the corporate out of an unimaginable scenario. That is the best path...I imagine it with all my coronary heart.

— jack⚡️ (@jack) April 26, 2022

"In precept, I don’t imagine anybody ought to personal or run Twitter. It needs to be a public good at a protocol stage, not an organization. Fixing for the issue of it being an organization nonetheless, Elon is the singular resolution I belief," he stated.

"I belief his mission to increase the sunshine of consciousness," Dorsey added, who referred to as Twitter "the closest factor we've got to a worldwide consciousness".

Underneath new administration

A securities submitting printed on April 14 when Musk made the supply to purchase Twitter revealed that the billionaire didn't trust within the firm's present administration.

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Deeply happy with our groups and impressed by the work that has by no means been extra necessary

Parag Agrawal

Twitter CEO

"If the deal doesn’t work, provided that I don’t trust in administration nor do I imagine I can drive the mandatory change within the public market, I would wish to rethink my place as a shareholder," Musk warned.

This insecurity might result in present boss Agrawal, who solely grew to become Twitter CEO in November final yr, standing down as soon as Musk completes his acquisition.

Agrawal, beforehand the corporate's chief know-how officer, revamped $30 million (€28 million) in 2021 - largely in inventory awards.

Estimates from analysis agency Equilar recommend that he might stand to obtain a severance bundle price round $42 million (€39.2 million) if he had been to step apart inside 12 months of being appointed CEO in November.

Equilar's estimate features a yr’s price of Agrawal's base wage plus accelerated vesting of all fairness awards, an Equilar spokesperson informed Reuters, primarily based on Musk’s providing worth of $54.20 (€50.76) per share and phrases within the firm's current proxy assertion.

Agrawal has but to remark publicly on the deal, past a quick assertion issued on Monday.

"Twitter has a goal and relevance that impacts the complete world. Deeply happy with our groups and impressed by the work that has by no means been extra necessary," he stated.