Twitter Board Agrees on Taking $44Bn Offer from Elon Musk
Elon Musk, the Tesla CEO, who made the shocking offer of buying Twitter for $44Bn less than 2 weeks ago, said Twitter had a massive potential that he would like to uncover. He also highlighted specific changes to be made in the app, from relaxing its content restrictions to removing fake accounts. The company initially rejected Mr. Musk's offer; however, it will now ask shareholders to vote for approval.
Mr. Musk, regarding his deal strike, made it to Twitter that he wants to make the app better than before by improving the product with some novel features, creating the algorithms open source to increase trust, eradicating the spambots, and authenticating all humans.
The move comes as Twitter faces increasing pressure from politicians and regulators over the content that appears on its app. In addition, it has received critics from every side over its effort to mediate misinformation on the network.
Mr. Musk, who has more than 80Mn followers on Twitter, has a disputable history on the platform. In 2018 US financial regulators cited him for deceiving Tesla investors with his tweets, demands that were solved in a $4Mn settlement and that he continues to refuse. In 2019, he was struck with a defamation lawsuit, which he successfully conquered after calling a diver involved in rescuing Thailand schoolboys on the platform.
Mr. Musk's aims on Twitter have moved at a drastic rate. It emerged at the start of April that he had become the largest stakeholder in the company with a 9.2% share. He was then invited to take part in Twitter's board but declined the offer before launching a surprise bid for the firm on 14 April. It tried to prevent his bid, threatening to weaken the shareholdings of anyone who purchased more than 5% share on Twitter. However, its attitude changed after Mr. Musk unveiled more financial details about his proposed bid.
The Twitter board unanimously accepted the bid, which will be presented to stakeholders for an agreement vote.