Elon Musk's takeover of Twitter
On April 14, 2022, business mogul Elon Musk offered to acquire Twitter, the social media company, for $43 billion. He was Twitter's single largest shareholder, acquiring 9.1% of the stock prior to the offer for $2.64 billion. Twitter invited Musk to join the board, which Musk accepted before changing his mind. In response to Musk's proposal, Twitter announced a "poison pill" strategy that would allow shareholders to purchase additional shares in the event of a buyout the next day. On April 25, Twitter's board unanimously accepted Musk's $44 billion offer. Twitter will be converted into a privately held company. As of April 2022, the acquisition process is awaiting regulatory and shareholder approval.
The acquisition is described as one of the largest privately held transactions by the company. Regarding the purchase, some praised Musk's reforms and vision, but also expressed concerns about an increase in cyberbullying on Twitter.
Elon Musk posted his first tweet to his personal Twitter account in June 2010 and had over 80 million followers at the time of purchase. To a tweet in 2017 that suggested he buy Twitter, he replied, "How much?" On March 24, Musk tweeted a statement criticizing Twitter and surveyed followers to see if Twitter adhered to the principle that "freedom of the press is essential for democracy to work."
Musk began buying Twitter stock on January 31, 2022. On April 4, Musk announced on March 14 that it had acquired a 9.1% stake in Twitter for $2.64 billion, becoming the company's largest shareholder. Since the announcement, Twitter's stock has surged 27%, the biggest increase since an IPO in 2013. On April 5, Twitter invited Musk to the company's board of directors, which Musk accepted. Had he joined the board, Musk would not have owned more than 14.9%. Four days later, before the position took effect, Musk reversed his decision to join the board after posting several tweets criticizing Twitter.
On April 14, Musk made a voluntary, non-binding offer to acquire the company for $43 billion ($54.20 per share) and convert it into a private company. The bid was interpreted as a hostile takeover attempt, and Twitter responded that its board "will carefully review the offer to determine a course of action that it believes is in the best interest of the company and all Twitter shareholders." Musk said he believed in Twitter's potential to "become a global platform for freedom of the press," and argued that freedom of the press was "a social obligation necessary for democracy to function," and that he did not offer to extort his fortune. In a TED interview, Musk showed little interest in fighting censorship by governments around the world, saying "Twitter should obey the laws of the country." Instead, Musk's concerns about freedom of expression were almost entirely about Twitter's arbitration policy. The price of $54.20 per share appears to be derived from the slang term for marijuana consumption in cannabis culture, '420'. announced "Poison Peel" expires on April 14, 2023. On April 20, Musk joined Morgan Stanley, Bank of America, Barclays, MUFG, Societe Generale, Mizuho Bank,