Elon Musk Twitter Deal Finalized After Months of Uncertainty

In April Twitter Inc., one of the world's most popular social media networks, announced that it had accepted Elon Musk’s bid to acquire Twitter. Musk and Twitter entered into a definitive agreement in which Musk agreed to buy Twitter shares for $54.20 per share, to be paid in cash in a transaction valued at $44 billion.

There were mixed reactions at Twitter headquarters following the announcement. Some employees reacted with humour, others with the hope of a brighter, more open future at Twitter. In the political landscape, Republicans who were displeased with the banning of Donald Trump on the platform applauded the acquisition announcement. Republican lawmakers who had criticized the company over its policies and censorship of content also welcomed the news; many of them believing that Elon Musk will bring “free speech” to Twitter. Democrats were worried about an upsurge of false news and hate speech on the platform, with some Democrats calling for heavier taxes on billionaires to curb too much power in their hands. Democratic Senator Elizabeth Warren tweeted: “This deal is dangerous for our democracy. Billionaires like Elon Musk play by a different set of rules than everyone else, accumulating power for their own gain.” The then White House Press Secretary said that President Biden had long been concerned about the power of large social media platforms.

Twitter has become one of the most influential social media platforms. Politicians, advocates, activists, rights groups, and startups all turn to Twitter to champion their causes and to promote their businesses. Twitter wields its suspension hammer on any person or entity who goes against its terms of use and policies. In 2021, Twitter removed a tweet made by the president of Nigeria citing a violation of its policies. The Nigerian government responded two days later with a total ban of Twitter within the territory. The ban lasted for seven months and has since been lifted.

Musk’s Intent

Elon Musk has iterated that his intention to acquire Twitter is not for personal gains, but it is to promote and encourage free speech on the platform, get rid of bots on the platform, and make the platform a “digital town square.” Musk Tweeted that he wants to make Twitter a place where a wide range of beliefs can be debated healthily, without resorting to violence.

After the first acquisition announcement in April, Twitter and Elon Musk had a series of dramatic back-and-forths. Following the April announcement, Musk later announced that he would abandon the Twitter deal on concerns that spam bots were under-reported on the platform. Twitter sued Elon Musk claiming that the Tesla CEO was legally committed to the acquisition. Early this month, Elon Musk announced that he would rekindle his Twitter takeover plans under the condition that all legal proceedings come to a halt.

The Musk Effect

Following the acquisition announcement in April, Twitter shares climbed 30%; and Dogecoin, Elon Musk’s favourite meme coin which he had frequently promoted, also climbed by more than 20% at the time.

Dogecoin has seen a surge of up to 35% this week following immense anticipation that the Musk–Twitter deal was approaching a close. Elon Musk, the Tesla and SpaceX CEO, changed his Twitter bio to “Chief Twit” on Wednesday; shortly after, there was news of the acquisition deal being closed.

Elon Musk visited the Twitter headquarters in San Francisco on Wednesday ahead of the Twitter takeover deadline. Musk posted a video of himself entering Twitter HQ with the caption “Entering Twitter HQ – let that sink in!” while holding a sink in his hand. Musk is known for his eccentricities and unpredictability. A day after entering Twitter HQ, Musk tweeted “the bird is freed”; a clear indication that the deal had been sealed.

New Board, New Partners, and The Future of Twitter

As the acquisition deal was closed, Musk wasted no time in getting to work. As the new owner of Twitter, one of Musk's first actions was to fire some top members of the Twitter executive board. Elon Musk fired Chief Executive Parag Agrawal and Chief Financial Officer Ned Segal. Reports also state that Vijaya Gadde, Twitter’s top legal and policy executive was also fired.

Elon Musk has posted a series of tweets citing his plans for the future of Twitter. In one of his tweets, he said Twitter will be forming a content moderation council with widely diverse viewpoints.

On the business side, Binance has committed $500 million to Musk’s Twitter takeover as an equity investor. Binance CEO Changpeng Zhao confirmed the investment rumour in a tweet today. In a May 2022 SEC filing, Binance had previously been identified as one of the 19 different parties helping finance Elon Musk's takeover of Twitter.

With regards to Twitter stocks, New York Stock Exchange (NYSE) has made a filing with the U.S. Securities and Exchange Commission (SEC) stating that Twitter stocks will be delisted from the exchange at the opening of business on November 8. Elon Musk's company X Holdings will now hold all the stocks of Twitter.