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Elon Musk offers to buy Twitter

Elon Musk proposed to purchase Twitter for $54.20 a share in a filing published Thursday, saying the web-based entertainment organization should be made private, barely seven days after revealing a 9.1% stake in the company. Musk’s proposition values Twitter at about $43 billion.

“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,” Musk wrote in a letter sent to Twitter Chairman Bret Taylor and disclosed in a securities filing.

Twitter has received Elon Musk’s proposal

Twitter issued an statement affirming that it had gotten the proposition. The organization said its board would carefully review the proposition “to decide the strategy that it is in the best interest of the organization and all Twitter stockholders.”

Twitter declined to comment with respect to when its board would meet to examine the offer. Shares of Twitter (TWTR) shot up as much as 13% in premarket trading on the offer. However, it was soon retreated and were trading up about 5% at the market open. They were minimal changed at noontime and slipped into a negative area, proposing that financial backers had questions that the deal will be accepted or not.

Paying for the purchase

Musk didn’t uncover how he expects to support his purchase. He said he has employed Wall Street Goliath Morgan Stanley (MS)as his financial advisor for the transaction.

In spite of the fact that Musk is the richest individual on Earth, the majority of his $274 billion total assets is restricted in his holdings in the publicly-traded stock of Tesla and privately-held SpaceX, and he has been hesitant to sell shares of Tesla past what he needed to in order to pay taxes.

Shares of Tesla (TSLA) slipped 3% in early trading on Thursday, maybe on apprehensions that Musk would sell shares to raise money, or that he could be distracted from his obligations at Tesla by his most recent interest in Twitter.

Elon Musk promised to build a new platform

The CEO of Tesla, Elon Musk, has said that he is giving significant thought to building another social media platform. In any case, no other details were mentioned of the social platform regarding its working or design. His tweet comes a day after he put out a Twitter survey inquiring whether they accepted Twitter adheres to the principle of free speech, to which over 70 percent voted “no”. He referenced: “The consequences of this poll will be important. Please vote carefully”

A Twitter user, that goes by the name of “PPathole” asked Musk if he would consider building a new social media platform that would consist of an open-source algorithm. The user also suggested that the new platform should be one where free speech and adhering to free speech is given top priority and where propaganda is very minimal. To which, Musk replied that he is seriously giving it a thought.

Experts today are pondering precisely why Musk needs to purchase Twitter, how he intends to manage it, and assuming that he’s even serious. In one investigator’s perspective, If he doesn’t bow out, “ultimately we believe this soap opera will end with Musk owning Twitter after this aggressive hostile takeover of the company. It would be hard for any other bidders/consortium to emerge and the Twitter board will be forced likely to accept this bid and/or run an active process to sell Twitter,” said Dan Ives of Wedbush.

Also read: Elon Musk named Time’s 2021 ‘Person of the Year’

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