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Is Twitter Agreed To Musk Bid? Who Is The New CEO Of Twitter, Details Explained!

Twitter’s acceptance of Elon Musk’s takeover offer of around USD44 billion brings Musk, the billionaire Tesla CEO, one step closer to acquiring the social media platform. It is expected that the deal will close by the end of this year. Before the deal can close, shareholders and regulators in the US as well as in other countries where Twitter has business will need to weigh in. Musk is on the right track, as Twitter’s board unanimously approved his offer. They are also recommending that shareholders do so. For More Updates Stay Tuned With Moneycompanion.us.

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Twitter announced the deal Monday. It noted that the offer, which is 38 percent higher than the closing stock price of Twitter on April 1, was a “substantial” cash premium and would be “the best way forward for Twitter stockholders.” The move, also known as a poison pill, was widely interpreted as a sign that Twitter’s directors were preparing to reject Musk’s initial offer or to find another suitor who will pay more.

Who Is The New CEO Of Twitter

The battleground changed dramatically when Musk revealed that he had raised USD46.5 billion, including USD21 billion from his personal fortune, to finance the purchase. Musk indicated that other investors may be able to contribute to the financing. Musk said that other investors could contribute to the financing. This locked-in financing was not only a sign of Musk’s seriousness, but it also opened the door for large Twitter shareholders to hear more about Musk’s plans for San Francisco.

Although the details of these conversations are not known, Musk could point out a 20-year history of building and running businesses. He was most famously the long-serving CEO of Tesla. The current value of the electric car manufacturer is USD1 trillion, which is 25 times greater than Twitter. John Meyer, an investor and technology entrepreneur, stated that Elon Musk would be the best for Twitter. He would also replace the board and double down on investments in new products and revenue-generating sources.

Is Twitter Agreed To Musk Bid

Musk has a track record to do the impossible. It’s easy to see how other Twitter shareholders would welcome a shakeup and the opportunity to cash out their investment. The shares traded below USD40 before Musk revealed his 9 percent stake in Twitter earlier in the month. This was not much different from its USD26 value when Twitter went public in December 2013. The tech-driven Nasdaq has tripled in value since then, even though it was hit by a downturn.

elon musk twitter

Twitter has been a slow lane because it has struggled to post consistent profits and has generated little revenue growth in comparison to Google and Facebook, two of the most powerful digital advertising platforms. Tesla stock now has a value of nearly 300 times that it had in 2010 when it was first listed. After struggling for over a decade to make money, Tesla’s stock is now worth nearly 300 times more than when it went public in 2010. The buyer is required to review the books of the company before agreeing to buy it.elon musk twitter

Angelo Zino, CFRA’s tech analyst, stated that this step is unlikely to pose any problems for the deal. Zino stated that Zino is not buying the company from a financial standpoint. Zino stated that he will do whatever he likes with the company and that he may make major changes to the business model. Last year, Twitter generated revenue of USD5 billion. The US contributed USD2.8 billion and the rest was earned abroad. The proposed Twitter buyout could be reviewed by the US Federal Trade Commission or the European Commission.

The agencies focus on the main issues of how a sale of a company might affect competition within an industry or whether it violates antitrust law. These reviews can take several months or even longer and are more difficult when two companies from the same industry combine or if a single buyer has a significant stake in other companies in that industry. Analysts said that neither Tesla nor Musk’s other company Space Exploration Technologies or SpaceX are social media platforms and therefore antitrust concerns will not be raised when regulators review the deal.

elon musk twitter

Wedbush analyst Daniel Ives stated Monday that there are no major regulatory obstacles to the deal closing. Subject to approval by Twitter shareholders, the deal is expected close in 2022. Twitter has not yet announced the date of a shareholder vote. However, the annual meeting for the company is scheduled for May 25, which may make it convenient to poll shareholders. Any company can hold a shareholder vote, even if regulators have not completed their review of a proposed takeover. It’s not clear what will happen to Twitter’s existing board or management team at this stage. However, Musk has made it clear that he feels the company is in a poor place. This assessment is a strong indicator that Musk’s takeover will also include the purge of Twitter’s top ranks.

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