Musk Takes Over Twitter

Musk Takes Over Twitter

John Montana

Elon Musk, the founder of Tesla, has just bought Twitter. There was a lot of negotiating in order for Musk to purchase Twitter and according to TechCrunch “Before he made the offer, he bought a 9.2% stake in the company, was offered a board seat, declined the board seat.” 

Musk sat down with the founders of Twitter to get down to the final deal of buying twitter with Fox Business stating, “The elephant in the room at the Twitter shareholder meeting will clearly be the Musk $44 billion deal price for the company with shareholders encouraged by the Board to vote in favor of this inked deal.” After a long time had passed, a deal struck, stated The New York Times. “Twitter agreed to be taken over at $54.20 a share, a 38 percent premium over the share price before it was revealed that Mr. Musk had been buying up the company’s stock.”

“$199 billion. That’s how much 50-year-old Musk, the world’s richest person, is worth”, according to Forbes. Once Musk bought Twitter there was a massive market crash. According to Market Watch, “Easy come, easy go, as shares of Twitter Inc. fell below where Elon Musk bought it, wiping out more than $1.1 billion in gains in four weeks.” This really lost revenue for Musk, however the deal Musk signed was  “a contract with Twitter,” in which he, “agreed to a $1 billion breakup fee, and waived his right to perform due diligence, as outlined in Twitter’s Securities and Exchange Commission filing about the deal,” Yahoo stated. 

It was a tough decision Musk had to make, yet he is now hoping he will gain profit from Twitter and continue to become richer each day.