Is Twitter Going Private And What Does It Actually Mean?

What do you think? Is Twitter going private? Twitter has been in the spotlight since Musk expressed his intention to buy the platform on April 14. Now, on Monday, April 25th, the deal has come through, and here is what we know.

Elon Musk, the Tesla CEO, previously owned approximately 9.2% of Twitter shares, making him the only individual shareholder to hold that kind of chunk.

Presently, Twitter has accepted Elon Musk’s bid to buy the firm for $44 billion. In addition, TWTR stockholders will get $54.20 in cash for each share of common stock they possess under the terms of the deal.

Musk, an active user on the platform, promotes his interests, criticizes opponents, and opines on various matters to over 83 million followers. He started buying shares in January and has promised a more tolerant approach to content monitoring on the social media site, where he — the world’s richest person, said in one of his tweets about “free speech.”

When Did Twitter Start?

The platform began as a private corporation in March 2006, founded by Jack Dorsey, Noah Glass, Biz Stone, and Evan Williams in San Francisco, California.

However, in 2013, Twitter announced that it would become a publicly-traded corporation, which meant that it would sell shares to the general public.

What Does Going Private Mean For Investors?

There will be no immediate changes to the website’s functioning because the acquisition has not been completed — final terms must be agreed upon, and regulators must accept the agreement.

Potential investors will be unable to purchase shares in the firm after it goes private, and it will be delisted from the New York Stock Exchange.

Musk will be less inhibited when making remarks that may affect the platform’s perception if Twitter is made private. Owners of publicly-traded enterprises must be far more cautious since if they say something controversial about the company, the stock price and value might drop. This is not a problem for private businesses.

On Monday night, after Elon Musk announced the the agreement of the deal said in a statement and is quoted “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated.”

A series of Tweets of Elon Musk On Twitter about freedom of speech along with his clarification.

 

Nobody will be allowed to acquire shares in Twitter when the billionaire has total personal ownership of the firm.

Frequently Asked Questions

Q.1 Did Elon back out of Twitter?

Ans. According to recent reports, Elon Musk withdrew from the deal on Monday stating that Twitter did not provide sufficient details on spam accounts. Monday saw a decline in Twitter stock as Elon Musk declared his intention to back out of an agreement to acquire the social media site for $44 billion (£36 billion).

Q.2 Why Did Twitter Sue Elon Musk?

Ans. Twitter referred to Musk’s justifications as a “pretext” that lacked substance and said his choice to quit the deal had more to do with the stock market’s collapse, particularly for tech equities.

Twitter also claimed that it withheld further spam account information from Musk out of concern that he might quit the deal and launch a rival platform.

Q.3 Can Elon be forced to buy Twitter?

Ans. Yes, with the current lawsuit he can be forced to buy Twitter as the contracts were already signed for a corporate merger agreement. So terminating the contract can be a breach of contract.

Conclusion

Is Twitter going private or not? What Is Elon Musk going to do with Twitter? Only time will tell us all the answers. And ultimately, he will have more control and power to tweet and say whatever he wishes to convey. In addition, Elon Musk will have more influence over the service since he would be the only owner rather than a group of shareholders. He will also have greater flexibility in what he can say and do concerning the firm since he would not have to worry about the share price decreases. Also, if you want to stay abreast with all the Elon Musk- Twitter saga, stay tuned for more articles. Till then, you can also read the entire fuss over edit buttons.