After 11 days of rejecting Musk's offer of taking Twitter, private, the Twitter board has finally struck a deal with the Tesla. Billionaire, what are the contents of the deal and what impact does it have on Twitter's future? Join me today in this blog, as we explore the deal that Elon has finally made with.
It was difficult to imagine that the Twitter board was going to finally strike a deal with the Tesla boss after they rejected his offer of buying a hundred percent stake in Twitter. Most people believe that the board was hell bent to frustrate the Tesla founder. When they adopted a poison pill against him.
Initially, all signs were showing that the board had rejected Musk's Twitter takeover for $54 and 20 cents per share, which amounts to 43 billion. Musk revealed that he had filed an offer with the U S security and exchange commission via a tweet that reads, I made an offer on Thursday, the 21st of April this year, which was exactly one week after making the first offer the tech genius increased his initial offer by $3.5 billion.
The new offer of $46.5 billion seem to have attracted the Twitter board who agreed to start negotiating. The hardworking Tesla CEO is spent the following weekend after making the offer in some lengthy negotiations with the Twitter board. Finally, the long negotiations have paid off as the Tesla CEO and the board have struck a deal by early Monday morning on the 25th of April, there was high speculation about the deal, which made the Twitter shares rise by 400.
However, the rise in the new share price is still below. The share price of Musk's offer. Elon has been a blessing to Twitter, given that he also made the Twitter share price rise by 27%. When he bought a 9.2% stake in the social media platform. In the beginning of April, after buying that stake, the Tesla boss became the largest individual shareholder on the planet.
In his bid offer, Elan indicated that he was going to buy the Twitter shares and cash wall streets. Morgan Stanley is the major bank that is financially supporting Musk's Twitter takeover. Elon Musk's fans have been left guessing as to who will be the next Twitter CEO as the tech guru takes the microblogging Cyprus.
The multitalented CEO has already overloaded as he is the boss of Tesla space, X Neurolink and the boring company. There is every chance that must will not take up the CEO role in Twitter, as he is currently working on some important projects in his space, X and Tesla companies as a lead designer in space X, Elon Musk, who is a self-learned rocket scientist is heavily involved in making the Starship, which is a gigantic rocket that will be used to ferry, humans and payloads tomorrow.
As an engineer Musk is working on Tesla's autopilot feature that will make the Tesla cars to be fully autonomous Musk may also not have enough time to dedicate to Twitter as CEO, as he currently works for around 100 hours per week, and sometimes even works on both Saturdays and Sundays in matters of time.
Musk may also find it necessary to dedicate some hours to his family, considering that he has two small kids, his son, X and daughter. In Musk's offer letter addressed to the Twitter board chairman, Brett Taylor, the tech icon indicated that he does not have trust in the Twitter management. It is obvious that Musk will replace Taylor as chairman, but Pirog Arbor wall has very high chances of maintaining his CEO position.
There is no doubt that Musk will be impressed by pirogues experience. Pirog joined Twitter in 2011 and served as a software engineer up to 2017 when he was appointed as chief technical. In his tenure as Twitter CTO, he successfully worked on a number of key projects, such as developing a decentralized social network protocol.
Pirog became the CEO immediately after Jack Dorsey resigned in November of last year with such a wealth of experience, Musk will trust Parag with the job. However, Musk may surprise us by appointing Jack Dorsey as the new Twitter CEO. This will be quite interesting considering that Dorsey did resign from the same position, some six months.
But if appointed Jack will have the opportunity of directly working with his close friend, Ilan, Twitter will experience a number of changes under the Tesla. CEO must promise that he will fight spam bots in a tweet that reads, if our Twitter bid succeeds, we will defeat the spam bots or die. Trying the spam bots are annoying because they replicate the tasks of authentic Twitter users, which include following other users, liking and commenting on.
Similarly online scammers on Twitter are also annoying as they have a sole objective of swindling money from innocent Twitter users. As the new Twitter owner, Elon Musk has warned that spam and scam accounts on the platform will be deleted. Musk has also promised that there will still be shareholders in Twitter, even after buying Twitter, he made the revelations via tweet that reads we'll endeavor to keep as many shareholders in privatized Twitter as allowed by law.
As per the law, a newly privatized Twitter will be allowed to have a minimum of one shareholder and a maximum of 50 shareholders in the deal that saw Musk by 100% stock in Twitter, four of the major shareholders accounted for 30% of the shares. Top on the list is the Vanguard group that controls about 82.4 million Twitter shares representing a 10.3%.
The group was the only one that had more steak than Elan's 9.2% ownership in the social media platform. Another company that had a huge stake in Twitter is the wall street, financial giant Morgan Stanley that has 67 million shares representing 8.4% ownership. It is interesting that Morgan Stanley is also the bank that funded Musk with the money that he has used to buy Twitter.
This would also mean that representatives of Morgan Stanley were also rooting for Musk in the Twitter board, Twitter founder, and former CEO. Jack Dorsey is also another critical board member that was supporting the privatization of the company. He founded BlackRock incorporation was also a major stakeholder that had 52.1 million shares representing a 6.5%.
And finally there is these state street corporation that had 36.4 million shares that represent a 4.5% stake in the company. Another great beneficiary in the sale of Twitter is its founder and former CEO who owned a 2.2, 5% stake in the company in individual capacity. As such, Jake has made close to $1 billion in cash from Musk's Twitter takeover.
Jack also made some good amount of money when he sold his first tweet, which is also the first tweet ever. It was sold as a non fungible token for $2.9 million. He donated the money to an organization in Africa that was dedicated to the fighting of the Corona. It is just unbelievable that the tweet is now being sold for $48 million.
You can be sure that Elon Musk did not buy Twitter for economic gains. Although being the richest man on the planet, Elan is not interested in making more wealth as he lives a simple life. He even sold his mansions and does not believe in acquiring material possession. What drives the Elon is the desire to solve the problems of humanity through his electric vehicle company.
He seeks to solve the problem of climate change by promoting the production and consumption of sustainable energy. Tesla has the potential for producing solar energy. After it acquired solar city company in 2015 for $2 billion, solar city is dedicated to the production of solar energy for personal and commercial use.
The Tesla cars are also electric, which means they do not depend on fossil fuels, but use clean energy Musk also wants to save humanity through his space X company. The space X founder believes that the earth will be destroyed in the future due to human or natural causes as such. He has a goal of colonizing Mars, where he plans to establish a self-sustaining city.
By 2050, he believes that humanity will go to the planet after earth is destroyed. Must projects that more than 1 million people would have migrated to the red planet by 2060. So even in the case of Twitter, Musk is buying it for the benefit of humanity. He hopes to reform it and make it a platform that promotes free speech and democracy.
Elon Musk's deal with Twitter is for him to take the company private for $44 billion. It was a deal that was too good for Twitter to resist.
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