Elon Musk Agrees to Buy Twitter


Twitter, which went public in 2013, also has a turbulent corporate history. It has repeatedly dealt with board dysfunction and drama with its founders and has been sued in the past by Disney and other interested buyers, including. sales team. In 2020, activist investment firm Elliott Management took a stake on Twitter and urged co-founder Jack Dorsey to step down from his CEO position. Mr Dorsey resigned last year.

“This company is very low-income, especially when compared to other platforms and competitors like Facebook,” said Pınar Yıldırım, a marketing professor at the Wharton School of Business at the University of Pennsylvania. “If you look at it from a pure business value perspective, there’s definitely room for improvement.”

Twitter’s chairman, Bret Taylor, said in a statement that the board “executed a thoughtful and thorough process” in Mr Musk’s proposal and that the deal would “provide a substantial cash bonus” for shareholders.

Former antitrust officials said it’s unlikely that regulators would seriously object to the transaction, as the government often intervenes to stop a deal when a company buys a competitor.

The deal came together within a few weeks. Mr. Musk, who also leads electric car maker Tesla and rocket maker SpaceX, began buying Twitter shares in January and announced this month. owned more than 9 percent of shares.

This immediately started a guessing game as to what Mr. Musk was planning to do with the platform. Twitter’s executives initially greeted him. Board of Directorsbut it reverse course within days and launched a quote instead buy the company downright.

Initially, any deal seemed unlikely, as the entrepreneur did not say how he would finance the deal. Twitter executives also looked skeptical, given that it was difficult to understand how much of a joke Mr. For example, in 2018 he tweeted: Planned to take over Tesla privately and falsely claimed to be “insured” for such a deal.



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