THE ACQUISITION OF SOUTH AFRICAN BORN ELON MUSK THE NEW TWITTER OWNER
Musk is an active user of the social media platform Twitter, where he has over 84 million followers. Musk made the first tweet on his personal account in June 2010.He posts memes, promotes his business interests, and sometimes comments on contemporary political and cultural issues.
Musk has faced some controversy as a result of his use of the platform. In August 2018, he claimed in a tweet that he was taking Tesla private at $420 per share, a joking reference to marijuana. An SEC investigation concluded that the tweets had no basis in fact and hurt investors, resulting in separate fines for Musk and Tesla of $20 million each.
In 2022, he was also used by Tesla shareholders over the tweet. Musk maintains that the joke was "worth it". In 2020, a tweet by Musk stating that" Tesla's stock price is too high" reduced the company's value by $14 billion. Musk encountered further troubles in 2021, when he tweeted a poll about whether to sell 10% of his stock in the company, before doing so.
On April 4, Musk agreed to a deal that would see him appointed to Twitter's board of directors and prohibit him from acquiring more than 14.9% of the company, but Musk decided not to join the board before his appointment became effective on April 9.On April 13, Musk made a $43 billion offer to buy Twitter, launching a takeover bid to buy 100% of Twitter's stock at $54.20 per share.
In a letter to Twitter's board, he indicated his desire to take the company private: " [Twitter] will neither thrive nor serve [its free speech] societal imperative in its current form. Twitter needs to be transformed into a private company." In response, Twitter's board adopted a shareholder rights plan to make it significantly more expensive for any single investor to own more than 15% of the company without approval of the board.
On April 25, it was reported that Twitter was prepared to accept Musk's offer. Later that same day, Elon Musk successfully concluded his bid to buy Twitter and bring the company private for approximately $44 billion.
BY: NHLAMULO MABUNDA
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