Elon Musk completes Twitter takeover and fires top executives
Elon Musk on Thursday completed his $44 billion acquisition of Twitter , after months of dramatic attempts to renege.
Why it matters: The deal gives Musk sole control of one of the most important global platforms for political speech and social discourse.
• He also fired CEO Parag Agarwal and CFO Ned Segal, with the Wall Street Journal reporting that they were escorted out of the company’s San Francisco headquarters.Backstory: Musk began talking with Twitter in March about getting involved with the company, and disclosed a 9.2% ownership stake in early April .
• By the end of April, he had a signed deal to buy the company. By May, he was publicly expressing doubts. And in July, he tried to officially walk away.
• Twitter sued, Musk countersued, and the two sides were headed to trial before Musk caved in early October.
• During most of this time, Twitter ‘s stock traded well below Musk ‘s $54.20 per share takeover offer. It closed under $40 as late as Sept. 6.Be smart: Musk first said his backpedaling was because Twitter underreported its number of fake accounts , before later adding in concerns tied to a whistleblower complaint from the company’s former chief security officer.
• But the subtext always was that he’d agreed to significantly overpay for a company with significant business challenges.
• He rushed into the deal, eschewing most due diligence, just as the broader tech markets took a nosedive.The big picture: Musk assumes control of Twitter at a chaotic time for free speech in America.
• Several alternative social networks have in recent years been launched, including former President Trump ‘s Truth Social.
• Trump , who was permanently suspended Trump ‘s account two days after the January 6 insurrection at the U.S. Capitol, has said he wouldn’t resume using Twitter even if his account was reinstated, something Musk has pledged to do.Between the lines: Musk hasn’t yet laid out a clear vision for Twitter .
• He reportedly told some investors that he’d cut 75% of Twitter ‘s headcount once the deal closes, but he more recently told employees otherwise.
• Musk said he wants Twitter to prioritize free speech , but has said he would adhere to the local laws of any country Twitter operates in — and those laws often stifle free speech . He also tweeted a message to advertisers, acknowledging that the platform “cannot become a free-for-all hellscape.”
• He’s also suggested that he wants to make Twitter a “super app,” akin to China’s WeChat.The bottom line: For months there have been worries and excitement about what an Elon-owned Twitter would do. Now the world is about to find out.
Backstory: Musk began talking with Twitter in March about getting involved with the company, and disclosed a 9.2% ownership stake in early April.
The big picture: Musk assumes control of Twitter at a chaotic time for free speech in America.
• Several alternative social networks have in recent years been launched, including former President Trump’s Truth Social.
• Trump, who was permanently suspended Trump’s account two days after the January 6 insurrection at the U.S. Capitol, has said he wouldn’t resume using Twitter even if his account was reinstated, something Musk has pledged to do.
• Musk said he wants Twitter to prioritize free speech, but has said he would adhere to the local laws of any country Twitter operates in — and those laws often stifle free speech.
