The world's richest man Elon Musk has bought the microblogging site Twitter for 44 billion (over Rs 3.37 trillion). The deal will expire this year. Once the deal is completed, Elon Musk will have full control of Twitter and Twitter will become a private company. But even so, the shareholder still dominates Twitter. The deal comes as the US and Twitter do business, with regulators weighing heavily.
What happened to the agreement now?
The Twitter board has accepted Elon Musk's offer. Twitter has accepted Musk's deal of 54.20 per share. On April 1, the stock gained 38 per cent more than it was supposed to. Ten days ago, Twitter's board of directors took a stand against Poison Pill's takeover of Twitter. But when Musk announced that he wanted to invest up to. 46.5 billion, including his personal 21 billion, the picture changed. Musk also said there was room for other investors. Announcing the deal on Monday, Twitter said it was a good way to benefit Twitter shareholders. According to Reuters, Tesla owner Musk is constantly meeting with Twitter shareholders. Brett Taylor, chairman of Twitter's independent board, announced the deal in a press release. Twitter's board has unanimously approved their offer, and shareholders have recommended that they do the same. The deal gives Tesla CEO ownership of the company with 217 million users. The company agreed to the acquisition, saying there would be no problems. This company is not financially viable. They may be trying to make significant changes to the company's business model, "said Angela Zino, CFRA's technology analyst.
What do regulators say?
Twitter made 5 billion last year. Of that, 2.8 billion came from the United States and the rest from abroad. The Federal Trade Commission in the United States or the European Commission in the EU are among the regulatory agencies. Who can review the proposed Twitter purchase. How does an agency's sale of a company generally affect competition in the industry or does it violate anti-trust laws? Focus on these key points. These reviews may take months or more. Neither Tesla nor Musk's other company, Space Exploration Technologies or SpaceX, are social media platforms, so there will be no problem when regulators review the deal, analysts said.
What about shareholder votes?
The deal is expected to be completed in 2022, subject to the approval of Twitter shareholders. Twitter has not announced a time for shareholder votes, although the company's annual meeting is set for May 25. Shareholders are likely to have a convenient time to vote. The company may seek shareholder opinion at any time before the regulator completes its review of the proposed acquisition.
Musk owns 9.2% of Twitter
Tesla chief Elon Musk currently has a 9.2 percent stake in Twitter. Elon Musk bought the stake in Twitter some time ago. Musk is also Twitter's largest shareholder. However, the Vanguard Group's fund later bought a 10.3 percent stake in Twitter. Thus she became the largest shareholder of the company. But now Musk will have the ownership.
What about Twitter leadership?
It is unknown at this time what he will do after leaving the post. On April 14, Elon Musk refused to attend a meeting of the company's board of directors, saying he did not trust the company's management. According to research firm Equilibrium, Parag Agarwal, chief executive of Twitter Inc., could earn about दश 42 million, or Rs 3.2 billion, if he is lifted within 12 months. Parag Agarwal was the company's first chief technology officer. He was then made CEO of the company in November last year.
Will Twitter improve?
"Freedom of speech is a cornerstone of a functioning democracy, and Twitter is a digital town square where important issues for the future of humanity are discussed," Musk said in a statement announcing the agreement. The algorithm is open source to build trust with new features. We also want to make Twitter better than ever by overcoming spam bots and authenticating everyone. "