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Musk makes $43 billion offer for Twitter to build ‘arena for free speech’

Musk is taking over the Twitter Platform. He has made a $43 billion offer for the same to build a platform for free speech.

Elon Musk, Tesla’s billionaire CEO, announced a $43 billion cash acquisition bid for Twitter Inc on Thursday, saying the social media industry needs to be private to thrive and become a platform for freedom of speech.

When asked about his proposal, Musk, who is now Twitter’s second-largest shareholder, said during a TED Talk in Vancouver: “I think it’s important to have an inclusive environment for free speech argument.”

Musk made the offer in a letter to Twitter’s board on Wednesday, and it went public in a regulatory filing on Thursday. Twitter is a microblogging network that has become a global means of communication for individuals and world leaders. Its price for the offer is $54.20 per share, which is 38% above, Twitter’s April 1 close, the last trading day before its 9.1% stake in the network. Social media network is made public.

Musk, the world’s richest man with a fortune of $273.6 billion, declined an invitation to join Twitter’s board on Saturday after announcing his investment. An analyst at movement said its buyback plans would limit the stake to just under 15% as a seat on the board.

Elon Musk Hints Says He Has a 'Plan B' If Twitter Takeover Bid UnsuccessfulAccording to a source, Twitter is analyzing the offer with help from Goldman Sachs and Wilson Sonsini Goodrich, and Rosati. According to the insider, the company is also preparing a poison pill in case Musk raises his stake early Friday.

Twitter shares fell 1.7% on Thursday.

Prince Alwaleed bin Talal of Saudi Arabia tweeted about the deal from his verified account. He describes himself as one of Twitter’s “biggest, long-term owners” and says Musk’s offer undervalued the company, which he turned down for his part.

Musk said on Twitter that it was his “best and last offer” and that if the board declines, he will re-evaluate his investment.

During his TED talk, Musk said, “That’s not a way to make money.”

“It is my instinct that having a widely-trusted, broad-based public platform is crucial to the future of civilization,” concluded Musk.

Elon Musk Suggests New Platform Needed In Place of Twitter, Posts PollMusk, a self-proclaimed ‘despot of free speech’, has criticized the social networking site and its limitations and recently conducted a Twitter poll asking people if they thought whether he upholds the principle of free speech or not. More than two million people voted no, with more than 70% saying no.

“Many people will be upset because West Coast tech is the de facto arbiter of free speech,” Musk wrote on Twitter after Twitter banned former President Donald Trump over concerns about inciting post-war violence, his supporters’ attack on the US Capital for the last time out.

Trump stated that he “probably wouldn’t be interested in returning to Twitter, where he has more than 88 million followers, in comments Wednesday before Musk’s announcement.

Karine Jean-Pierre, a White House official”, declined to comment on Musk’s bid for Twitter, saying that market regulators are independent of political authority.

A town hall meeting was held on Thursday for employees. On Twitter, some were concerned about Musk’s impact on the company’s ability to censor documents. According to one source, Parag CEO Agrawal reassured them that the company was not being “held hostage” against rumours of a Musk takeover bid.

Musk makes $43 billion offer for Twitter to build 'arena for free speech' -  Opera NewsMusk announced that Morgan Stanley, an American investment bank, was acting as a financial advisor for his bid. He didn’t say how he would fund the deal if the deal were to go through, but he told the TED audience that he “has enough assets” without going into specifics. CFRA Research analyst Angelo Zino said.

Musk could finance the deal using debt and selling shares. Musk settled his tax obligations last year by selling more than $15 billion worth of Tesla stock, or about 10% of his stake in the electric vehicle maker.

Even in pursuit of significant projects like audio chat rooms and newsletters, Twitter’s recent below-expected user additions have raised concerns about its growth prospects.

Twitter, founded just two years after Facebook, is overshadowed by the social media platform. From 1.93 billion daily users, Meta, which owns Facebook, generated $118 billion in revenue by 2021. Last year, Twitter generated $5.08 billion in revenue from 217 million Japanese users’ newspapers. Michael Hewson, the chief market analyst at CMC Markets, said: “The main question for Twitter’s board right now is whether to accept an overly generous offer for a poorly performing company or inefficient and tends to treat its users with indifference.

According to a source familiar with the matter, Twitter will not make a decision on Musk’s offer on Thursday. The panel is debating the limits of the evaluation procedure, which will then ask experts to evaluate the bids and wait for the results, according to the source.

Twitter Elon Musk live updates: Twitter blocks Musk with poison pillSince joining Twitter in 2009, Musk has amassed more than 80 million followers and uses the platform to make big announcements. Musk was restrained by a 2018 settlement with the US Securities and Exchange Commission that required him to seek pre-clearance for some of his Twitter statements after claiming he had “secure capital” to take Tesla private.

“If he wants to make Twitter private, his past clashes with regulators may not be a barrier – but it could put potential funding sources at risk reluctant to fund the deal – unless he’s prepared to commit a big chunk of it, Howard Fischer, a partner at Moses and Singer and a former senior adviser to the Securities and Exchange Commission, said Tesla’s decision to secure the debt.

In a client note, Wedbush Securities analyst Daniel Ives said, “It will be difficult for any other bidders/consortiums to show up, and Twitter’s board will be forced to accept this offer” and/or initiate an active process to sell Twitter.”

Musk admits Conference says success is uncertain but says his goal was to keep as many stockholders as the law permitted in a private firm.

When asked if there was a “Plan B” in case Twitter turned down the offer, Musk simply said, “There is.”

Edited by Prakriti Arora

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