Elon Musk puts Twitter acquisition on standby

Elon Musk puts Twitter acquisition on standby

Elon Musk puts the $ 44 billion acquisition of Twitter on standby. And he does it, ça va sans dire, with a tweet. “The Twitter agreement is momentarily pending”, the message of the founder of Tesla and SpaceX, which justifies the move with the lack of details that allow to calculate the exact weight of the fake accounts on the platform. In the message, Musk relaunches an article from Reuters, from ten days ago, which in turn mentions a report by the social platform that estimates the number of fake ones in less than 5% of its users. On Wall Street in pre-market, Twitter shares plummet 19.4% to $ 36.3 against a previous closing price of $ 45.

The takeover of Twitter:

The Musk's offer What the report says The promises Twitter content This content can also be viewed on the site it originates from.

Musk's offer In mid-April Elon Musk launched an offer to buy 100% of Twitter. After collecting 9.2% of the social network's shares and becoming its largest shareholder, the billionaire promised to pay $ 54.2 a share in cash, with a valuation of 54% of the closing price of Twitter's shares. to January 28 (the day before Musk's investment in Twitter that led him to become the largest shareholder) and putting in place an offer of 43.4 billion dollars. Musk's is a takeover bid (takeover) aimed at delisting Twitter from Wall Street indices.

The billionaire said the company has great potential and he is ready to bring it out. Musk disclosed his intentions in a letter addressed to the Securities and Exchange Commission (SEC), the stock market supervisor in the United States.

In the letter Musk wrote: "I invested in Twitter because I believe in its potential as a platform for fostering freedom of expression around the world, and I think that freedom of expression is imperative for a functioning democracy. However, since I made my investment, I have realized that the company, as it is currently structured, will neither thrive nor fulfill this social imperative. Twitter must be transformed into a private company. For this reason, I offer to buy 100% of Twitter at $ 54.20 a share in cash, a 54% premium over the day before my investment began, and a 38% premium over the day before that investment was announced. The offer is the best and the last, and if it is not accepted, I will need to reconsider my position as a shareholder. Twitter has extraordinary potential. I will unblock it. "

Elon Musk has promised to bring back Donald Trump on Twitter The future owner of the platform has opened the lifting of the indefinite ban that keeps the former president away from social media after the events on Capitol Hill. But he does not want to return What the report says Musk refers to a Reuters article, which reports the data of a Twitter document submitted to the financial authorities in which it is reported that in the first quarter of the year the platform would have estimated a 5% of fake accounts among the audience of monetizable users, which were then estimated at 229 million. The article, however, is dated May 3. The information has been circulating for at least ten days but only now has the billionaire come out of the closet, with a message that calls into question an agreement that is now considered to be in place. Also because Musk has taken very strong positions on the future of the platform.

For example, he is convinced that subscriptions alone will be able to generate around 10 billion dollars by 2028 and that total revenues will reach 26 , $ 4 billion in that year. Musk would have promised investors to boost Blue's Twitter subscriptions to 69 million by 2025, and then reach 159 million by 2028. Blue is the company's paid service, which gives users access to the "unsubscribe tweet" button. ", More profile personalization options, ad-free articles and other features.

Musk also expects to be able to trigger a huge growth in total Twitter users, aiming to reach 600 million by 2025, starting from the current 217 million, and to 931 million users in 2028. In addition, he promised the development of a new subscription service, called X.

The promises Among the billionaire's promises is the intention to lift the ban he has been holding for more than a year, and for an indefinite period , former US President Donald Trump away from Twitter for spreading fake news and hate speech, contributing to the assault of the Capitol by his supporters on January 6, 2021.

"I think the Permanent bans fundamentally undermine trust in Twitter as a city square where everyone can express their opinion, "Musk said during a conference organized by the Financial Times, adding that he thinks temporary suspensions are sensible:" If there are bad and wrong tweets , those should be erased or made invisible ".

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