It has been a month of news frenzy for the social network that we collectively despise. Elon Musk acquired 9.2% of Twitter in early April and aimed to exert his influence via the company's board of directors. Musk proposed an even more ludicrous scheme after he renounced his intended board seat: He would purchase the firm and take it private. Absolutely everyone freaked out and had an opinion, and some of those comments threw doubt on the sincerity of the notoriously unserious tech mogul's ambitious goals.
Musk's $43 billion bid values Twitter at less than it was trading for a year ago, prompting the question, "Is he for real?" Musk is famously unpredictable and prone to grandiose stunts, but according to Morgan Stanley and Bank of America, he is assembling the necessary funds.
Musk is the world's richest man, but he's also relatively cash-poor for a multi-billionaire, so making his play on Twitter would require him to cash out shares held at Tesla and SpaceX, the two companies he's ostensibly running while whipping us all into a frenzy over his completely unnecessary ambitions to purchase Twitter and reshape it in his image. Meanwhile, Twitter is attempting to repel Musk's approaches with a poison pill defense, which would allow current shareholders to purchase additional stock at very cheap rates, thereby diluting the company's shares and driving up the price of his offer.
As of April 25, Twitter has accepted Musk's $44 billion purchase offer. The purchase of Twitter from beginning to end is shown in the following timeline.
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A Chronology Of The Elon Musk-Twitter Fiasco
- U.S. officials said someone needs to watch Elon Musk's tweets. Before Musk submitted a bid for Twitter, SEC officials said they could subpoena the Tesla CEO for his tweets and asked a federal court not to allow the executive to continue tweeting recklessly.
- Elon Musk tweets that he is "seriously considering" developing his social media network. Shortly after U.S. officials sought a court to monitor Musk's tweets, the CEO of Tesla and SpaceX said he was seriously considering creating "the next Twitter."
- On April 4, Elon Musk purchased a 9.2% stake in Twitter. Based on the share price on Friday, March 4, Elon Musk's 9.2% stake in Twitter is worth around $2.9 billion.
- The following day, April 5, Twitter CEO Parag Agrawal revealed that Elon Musk had been appointed to Twitter's board in a series of tweets.
- In a major turnaround, Elon Musk will no longer join Twitter's board of directors as of April 10's announcement. Later that week, Twitter CEO Parag Agrawal revealed he would not be joining the social media company's board of directors. Agrawal's announcement followed a series of strange tweets from Elon Musk over the same weekend, in which he asked his more than 80 million followers if Twitter was dying, citing the low frequency of tweets from a few of the most prominent people on the social network.
- A Twitter shareholder sues Musk for failing to promptly report his enormous stake in Twitter. Musk failed to declare his 5% ownership in Twitter when he was obligated to do so, according to a federal securities class action complaint filed by a Twitter shareholder. The complaint asserts that the delay enabled Musk to purchase more Twitter shares at a reduced price, depriving sellers of Twitter stock of larger profits.
- On April 14, Elon Musk bid to purchase Twitter for $43 billion. The social network would be valued at $43.4 billion in an all-cash deal. The billionaire said he is prepared to spend $54.20 per share to acquire 100% of the business. Before being interviewed on TED, he filed the offer with the SEC and tweeted about it.
- Elon Musk interviews with TED a few hours after offering Twitter a substantial offer. The controversial CEO of Tesla and SpaceX was about to appear at the TED2022 conference for a discussion in such great demand that TED made the webcast open to the public.
- The next day, on April 15, Twitter's board turns to the defense everyone anticipated: the poison pill. Twitter's board of directors issued a press statement announcing the company's adoption of a limited-duration shareholder rights plan, sometimes known as a "poison pill" in merger and acquisition parlance. Twitter attempts to dissuade Elon Musk from purchasing the social network, although not mentioning him by name.
- Elon Musk explains how he would finance his $43 billion offer for Twitter. To summarize: Musk plans to borrow around $13 billion in different forms, $12.5 billion against his shareholdings, and $21 billion from his assets. Musk's proposal is not insignificant; therefore, it is understandable that the method of amassing the necessary funds in a single pile is intricate.
- On April 25, it was reported that Twitter and Elon Musk were close to an agreement. According to the New York Times, Twitter's board met on Sunday to discuss Musk's offer. On Monday morning, they began negotiations with Musk to hammer out additional details, such as the timeline for closing and what financial protections Twitter would enjoy should any potential deal fall through after it is announced. Both sources emphasize that the agreement is not yet official and is yet susceptible to collapse.
- Twitter accepted Elon Musk's $44 billion bid to acquire the company on April 25. Twitter has accepted Musk's offer to purchase the publicly listed firm for $54.20 per share, valuing the social media giant at $44 billion. After the news surfaced that trade was paused on Twitter, the business released a press statement announcing its acceptance of Musk's offer to take the social network private.
- Elon Musk's agreement with Twitter contains a $1 billion termination fee for both parties. According to a recent SEC filing, Elon Musk will be required to pay Twitter a $1 billion termination cost if he backs out of his $44 billion purchase of the social media platform. Musk revealed the cost on Monday. The document, which outlines the terms of the agreement, implies Twitter would be required to pay the same sum in particular situations.
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- Twitter has reportedly locked down its source code to prevent unauthorized modifications, according to Bloomberg sources with knowledge of the situation. After Elon Musk's $42 billion acquisition of the firm, this adjustment was reportedly made to prevent staff from "going rogue" and undermining the platform. Currently, modifications need the vice president's approval.
- Now that Elon is on Twitter, what's next? Enterprise Reporter Ron Miller analyzes the possible results of the trade while recognizing that it is impossible to predict what will occur next.
Featured image: Twitter photo created by freepik
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