Twitter is reportedly offering Elon Musk with records that incorporates the greater than 500 million tweets posted every day, doubtlessly finishing a standoff with the billionaire, who raised new doubts this week about whether or not he’s going to apply thru a $44 billion deal to shop for the influential social community.
The Washington Put up, bringing up an individual aware of the corporate’s considering, reported that Musk may just get this information once this week. Two dozen firms pay for get admission to to this information and the trove comprises real-time report of tweets, the gadgets they tweet from and details about the accounts that tweet. Twitter’s leaders are skeptical Musk will in finding new data that may lend a hand estimate the choice of unsolicited mail and faux accounts at the platform, in keeping with the document.
The reported determination displays how Twitter, which declined to remark at the document, is responding to Musk’s threats to again out of the deal. On Monday, Musk’s attorney Mike Ringler despatched a letter to Twitter, accusing the social community of refusing to supply Musk with extra details about unsolicited mail and faux accounts. Musk needs a “whole and correct working out of the very core of Twitter’s trade type — its lively person base” sooner than he strikes ahead with the purchase, the letter mentioned.
“This can be a transparent subject material breach of Twitter’s responsibilities below the merger settlement and Mr. Musk reserves all rights ensuing therefrom, together with his proper to not consummate the transaction and his proper to terminate the merger settlement,” the letter mentioned.
The letter to Twitter used to be every other signal that Musk, who runs each Tesla and SpaceX, might be getting chilly toes about purchasing the corporate. Musk has mentioned the deal cannot transfer ahead till he will get evidence that fewer than 5% of Twitter’s 229 million day by day customers within the first quarter had been pretend or spam-focused.
Musk agreed to shop for Twitter for $54.20 a proportion, a 38% top rate to Twitter’s final inventory value on April 1, when the billionaire printed he owns greater than 9% of Twitter. Musk has additionally mentioned {that a} lower cost is not out of the query, however Twitter says it does not plan to renegotiate the associated fee and intends to put into effect the settlement.
Additionally on Monday, Texas Legal professional Normal Ken Paxton mentioned his place of business is opening an investigation into the choice of bots on Twitter, announcing the problem could also be “immediately harming Texas shoppers and companies.” Musk moved Tesla, his electric-car corporate, to Austin about six months in the past.
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Elon Musk Is Buying Twitter. Here’s What Could Change
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The deal still needs to be approved by Twitter shareholders at a special meeting. No date has been given for the meeting yet.
Here’s what you need to know about the ongoing saga between Musk and Twitter:
Why does Musk want to buy Twitter?
Musk is an avid user of the service but also one of its loudest critics.
Musk tweeted a poll to his followers in March that asked whether users believed Twitter was protecting free speech. He said the poll results, in which roughly 70% of 2 million respondents answered “no,” would be “very important.”
“Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done?” Musk said in a follow-up tweet. Then he made an offer to buy Twitter, noting that he believed Twitter needed to be private to accomplish his goal.
The guarantee of free speech in the US Constitution’s First Amendment applies to the government censoring speech but not to companies such as Twitter, which have their own rules about what isn’t allowed on their sites.
Musk referenced free speech again when Twitter announced the deal in April. He also said he wanted to enhance Twitter with new features and promised he would make the service’s algorithms open source, defeat spam bots and authenticate all humans.
“Twitter has tremendous potential,” Musk wrote. “I look forward to working with the company and the community of users to unlock it.”
Progressives have criticized social media companies for failing to crack down on harmful content such as hate speech and harassment. Conservatives claim their speech is being censored. (Twitter has long denied allegations it censors conservatives.)
On April 19, Musk tweeted he thinks social media policies “are good if the most extreme 10% on left and right are equally unhappy.” He’s also said he would reverse the ban on former US President Donald Trump who was booted from the platform after the Jan. 6 Capitol Hill riots because of concerns about inciting violence. Trump has said he doesn’t plan to return to Twitter even if the company lifts the ban.
What has Twitter’s response been?
Initially, it seemed like Twitter was going to turn down the offer but the board started to take it more seriously when Musk offered details about how he would finance the deal. The company had adopted a defensive strategy known as the “poison pill” that would make it tougher for Musk to add to his stake in the company. The tactic allowed Twitter to accept a competing offer, if one emerged.
Twitter co-founder Jack Dorsey tweeted on April 15 that “as a public company, twitter has always been ‘for sale.’ that’s the real issue.” Twitter has dealt with leadership changes, layoffs and activist investors as a public company. After Twitter announced the deal, Dorsey said he didn’t believe that anyone should own or run Twitter but taking it back from Wall Street is the “correct first step.”
The idea and service is all that matters to me, and I will do whatever it takes to protect both. Twitter as a company has always been my sole issue and my biggest regret. It has been owned by Wall Street and the ad model. Taking it back from Wall Street is the correct first step.
— jack⚡️ (@jack) April 26, 2022
“Solving for the problem of it being a company however, Elon is the singular solution I trust,” Dorsey tweeted. “I trust his mission to extend the light of consciousness.”
A filing with the US Securities and Exchange Commission also shed more light on how the deal came together. Musk spoke to Twitter co-founder Jack Dorsey in March about the future of social media and decentralizing social media so users get more control over their data and what content they see.
Musk’s effort to acquire Twitter has been a bumpy one. Musk rejected a seat on Twitter’s board before offering to take the company private. Musk also had a conversation with Dorsey in early April in which Dorsey said he thought Twitter, a publicly traded company, would be better off as a private company, the filing shows.
How would Musk pay for Twitter?
Even for Musk, who’s worth about $220 billion, buying Twitter requires some financial juggling.
In an initial SEC filing on April 20, Musk said he had personally committed about $21 billion in equity financing. He also secured about $25.5 billion in debt financing through Morgan Stanley and other financial institutions.
Since then, Musk has raised capital by selling $8.5 billion in Tesla shares, presumably for the deal, and lined up $7.1 billion from outside investors. According to a May 4 filing, those investors include Sequoia Capital and Oracle co-founder Larry Ellison. (Ellison sits on Tesla’s board of directors.) Saudi Arabian investor Prince Alwaleed bin Talal Bin Abdulaziz Alsaud also agreed to pledge his stake of roughly 35 million shares to the deal.
On May 24, Musk pledged more equity to the deal. He’s now willing to put $33.5 billion toward the acquisition.
What happens next?
The deal still needs to be approved by shareholders, and there’s speculation that Musk could back out. Terminating the deal, though, would cost Musk $1 billion because of a termination fee that’s part of the agreement, according to an SEC filing on April 25.
Musk is trying to make the case, though, that Twitter is violating the agreement by allegedly refusing to hand over the data he wants on spam and fake accounts.
“At this point, Mr. Musk believes Twitter is transparently refusing to comply with its obligations under the merger agreement, which is causing further suspicion that the company is withholding the requested data due to concern for what Mr. Musk’s own analysis of that data will uncover,” Monday’s letter said.
The takeover attempt will likely lead to more leadership changes within Twitter. Musk is expected to serve as temporary CEO after the deal closes, CNBC reported. Parag Agrawal, who took over from co-founder Jack Dorsey in November, is expected to stay until the sale is completed. Musk also said he’d rein in executive and board pay, in addition to figuring out new ways to make money, according to Reuters, which cited anonymous sources. Last week, two longtime Twitter executives said the CEO asked them to leave their jobs.
Bloomberg reported that the entrepreneur had suggested job cuts as he pitched the deal. He also reportedly told banks that Twitter needed to get influencers and celebrities more active on the platform.
