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Why did Elon Musk buy Twitter? Elon Musk’s offer to buy Twitter, which was previously thought to be a long shot, has been accepted.
Twitter said the billionaire would pay $44 billion for the firm in a deal expected to finish this year.
Musk was so motivated to purchase Twitter that he made a “best and final offer,” declared that he had a Plan B in case that failed, and met personally with several huge Twitter shareholders to persuade them of his offer.
Musk made a $54.20 per share bid for Twitter and detailed his strategy to raise $46.5 billion to fund the transaction. Twitter’s stock jumped on Monday morning on reports that the company was close to reaching an agreement with Musk.
So why does the world’s richest man, who already owns Tesla and SpaceX, want to acquire the social media company?
Here’s what he’s stated about his plan and how quickly things may shift.
Why Did Elon Musk Want To Buy Twitter?
Musk has stated that he wants to promote free and open communication on the platform, which he believes is critical for exchanging ideas.
He elaborated on some of his goals in a TED interview shortly after announcing his candidacy.
Musk said, “I feel there must be an inclusive environment for free expression.” “Because Twitter has practically become the de facto town square, it’s crucial that people have both the reality and the idea that they may freely speak their minds within the law.”
Musk has not announced if he will lift the permanent ban on former President Donald Trump, who was barred from the site following the January uprising.
Critics of Musk’s idea have raised the fear that he will enable extremist content on the site, which Twitter and other social media giants are still struggling to eliminate. During his TED talk, Musk admitted that content control is a complex subject.
He believes Twitter should be “very careful with permanent bans” and that timeouts are preferable.
Also, he insisted that his transaction was not about profit.
He said, “I have a strong intuition that having a publically trusted and generally inclusive platform is critical for civilization’s destiny. Economics is irrelevant to me.”
How Quickly Could He Change Things On Twitter?
Probably not in the quick time frame. The agreement must be formalized, which may take weeks or months.
Musk will have to tell the Federal Trade Commission and the Department of Justice about his plans to purchase Twitter under federal law. The transaction might be delayed if regulators launch an investigation into the agreement.
Musk has promised to take Twitter private after that. “I now recognize the company will neither grow nor satisfy this social need in its existing form,” he stated in a statement filed with the Securities and Exchange Commission upon announcing his proposal. Twitter should be turned into a private company.”
Musk has stated that if he takes the company private, he wants to maintain as many shareholders as the law allows. And because he hasn’t revealed his intentions for a leadership team or a prospective board of directors, there are still a lot of unanswered issues regarding how much direct power Musk would possess.
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What Has Musk Said About A Potential Twitter Edit Button?
One of the most often requested features on Twitter is the edit button. Consider this scenario: You’ve produced the ideal 280-character-or-less thought, typed it out, and pressed “Tweet.” Then you notice a mistake.
There is no method to alter tweets without deleting and resending them on Twitter. Musk polled his Twitter followers on whether they wanted an edit button, and 73.6 percent of the more than 4 million respondents replied yes.
Twitter’s PR staff acknowledged the functionality was already in development a day later in a tweet.
The team tweeted with a winky expression, “No, we didn’t receive the idea from a survey.”
What Has Musk Mentioned About Opening Up The Twitter Algorithm?
Musk has stated that he wants to make Twitter’s algorithm more transparent, allowing users to see if their tweets have been elevated or downgraded. He wants to make the algorithm that determines whether a tweet is promoted or downgraded “open source” or available for everyone to look at and improve. He feels this will aid in preventing “behind the scenes” manipulation.
According to researchers, this strategy is far more sophisticated than Musk’s proposal suggests. Twitter has already considered that.
Twitter has considered an “algorithm marketplace” in which users may pick alternative ways to read their feeds, according to a former employee who spoke anonymously to discuss private concerns. However, according to the source, Twitter’s algorithms are so tightly linked to other areas of the site, so efforts to provide more transparency have been difficult. The source said that opening Twitter up might divulge trade secrets and attract misuse.
Musk said that he was not interested in profit when buying Twitter. He focused on the changes in the social network itself, trying to make the network much more transparent and advanced than it is today. It remains for us to follow the situation, and we will see if Elon Musk’s plans will come true when Twitter is officially in his hands.
Hello! I’m Annan Bhadra, a financial specialist and passionate writer. I have always been captivated by finance and its potential to empower individuals and communities. My academic journey began with an O level from the British Council, where I studied Accounting and Commerce. I then pursued my A level, focusing on International Business, also at the British Council. My passion for understanding the global economy led me to East West University, where I earned a degree in Economics. These educational experiences gave me a strong foundation in the financial world and fueled my desire to help others navigate their financial lives.