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NEW YORK (Reuters): Elon Musk clinched a deal to buy Twitter Inc for $ 44 billion cash on Monday in a transaction that will shift control of the social media platform populated by millions of users and global leaders to the world’s richest person.
It is a seminal moment for the 16-year-old company, which emerged as one of the world’s most influential public squares and now faces a string of challenges.
Musk, who calls himself a free speech absolutist, has criticised Twitter’s moderation. He wants Twitter’s algorithm for prioritising tweets to be public and objects to giving too much power on the service to corporations that advertise.
Political activists expect that a Musk regime will mean less moderation and reinstatement of banned individuals including former President Donald Trump. Conservatives cheered the prospect of fewer controls while some human rights activists voiced fears of a rise in hate speech.
Musk has also advocated user-friendly tweaks to the service, such as an edit button and defeating ‘spambots’ that send overwhelming amounts of unwanted tweets.
Discussions over the deal, which last week appeared uncertain, accelerated over the weekend after Musk wooed Twitter shareholders with financing details of his offer.
Under pressure, Twitter started negotiating with Musk to buy the company at his proposed $ 54.20 per share price.
“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,” Musk said in a statement.
Twitter Former CEO Jack Dorsey weighed in on the deal late on Monday with a series of tweets that thanked both Musk and Twitter’s Current CEO Parag Agrawal for “getting the company out of an impossible situation.” “Twitter as a company has always been my sole issue and my biggest regret. It has been owned by Wall Street and the ad model. Taking it back from Wall Street is the correct first step,” he said.
Musk, who is worth $ 268 billion according to Forbes, has said he is not primarily concerned with the economics of Twitter.
“Having a public platform that is maximally trusted and broadly inclusive is extremely important to the future of civilisation. I don’t care about the economics at all,” he said in a recent public talk.
Musk is chief executive of both electric car maker Tesla Inc and aerospace company SpaceX, and it is not clear how much time he will devote to Twitter or what he will do.
Although it is only about a 10th of the size of far larger social media platforms like Meta Platforms Inc’s Facebook, Twitter has been credited with helping spawn the Arab Spring uprising and accused of playing a role on 6 January 2021, storming of the US Capitol.
