Elon Musk Set To Become New Owner of Twitter

by Jonathan Howard
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It seems that Twitter is willing to work with Elon Musk and now the billionaire CEO will be the owner for $43 billion in cash. Shareholders pressured the board to meet with Musk and hear out his offer. He plans on buying the site and then making it a private entity. Much like SpaceX, the company itself will not be publicly traded.

According to a report from Reuters, Twitter’s board is set to announce the news as soon as Monday. There could be a last-minute collapse in this deal, however, for the time being, it looks like Musk is going to have another tech giant in his possession. As the richest man in the world, there really isn’t anything he can’t buy.

Musk bought up a large portion of Twitter shares to become the company’s largest shareholder earlier this month. He made an offer of $54.20 per share to buy out the company completely. At first, Twitter didn’t seem ready to deal with the CEO. However, after some time, it appears that they are all ears. The board had set up a “poison pill” option in the case there was an unapproved takeover by Musk.

So far, amid all of this news, the shares of Twitter have shot up to more than $51 a share. That’s a gain of more than 4%. There have been all kinds of things proposed by Elon Musk to make Twitter better. However, it will be telling if and when the deal comes through what all changes.

The saga has been up and down. Ever since Jack Dorsey left as CEO, the company has been struggling with its share price. However, this has clearly pumped things up. Be prepared for this to become official at any time late on Monday.

Elon Musk Twitter Saga About to End

One of the big reasons why Elon Musk has so much leverage in this Twitter deal has to do with share prices. The CEO that took over for Jack Dorsey, Parag Agrawal, has not had a great financial success record. While the company is set to make tons of money, the shareholders would like their investments to be valued higher. When Dorsey was CEO, the share price was higher than what Musk offered in his buyout.

Since the November switch though, stock prices have gone down 10% and there haven’t been many answers. Musk has been known for promoting some of his own investments on Twitter including DogeCoin and his own companies such as Tesla and SpaceX. However, can he pump the stock price of the company itself through similar actions?

Right now, it doesn’t appear that Elon Musk wants to do away with Twitter’s board. He has remarked on their performance, but there is little to go off of right now in that regard. Musk has made his offer and now Twitter is going to have to decide what it wants to do as a company. Go private or stay public.

Outsider.com