The Twitter logo on October 26, 2020, on a tablet and on a smartphone in Toulouse (AFP/Archives/Lionel BONAVENTURE)
Elon Musk has won his bet: the boss of Tesla and SpaceX has reached a definitive agreement with the board of directors of Twitter to buy the social network, valued at 44 billion dollars, with the stated aim of defending the freedom of expression.
The richest man in the world therefore becomes the owner of the platform he announced he wanted less than two weeks ago, and despite the initial opposition displayed by the council.
“Freedom of expression is the bedrock of a functioning democracy, and Twitter is the digital public square where issues vital to the future of humanity are debated,” said Elon Musk, quoted in the Twitter statement.
He will buy the social network at a price of 54.20 dollars per share – 38% more than its value at the close of the New York Stock Exchange on April 1, 2022 – and make it a private company, not listed on the stock exchange.
The board of directors (CA) initially tried to prevent this takeover.
But Elon Musk said last week he had secured $46.5 billion to complete the deal using his personal fortune and two bank loans from Morgan Stanley. He also threatened to launch a hostile takeover bid directly through shareholders.
“Once the financing was put in place with the threat of a hostile takeover, the board could no longer resort to a white knight or a second bidder,” noted Dan Ives of Wedbush Securities.
“It put their backs to the wall and forced them to come to the negotiating table,” added the analyst.
– “Very expensive toy” –
The news sparked many reactions, from enthusiasm to anguish.
“Twitter has a purpose and a meaning that concerns the whole world. I am very proud of our teams and inspired by the work that has never been more important”, declared Parag Agrawal, the current leader of Twitter soberly.
With more than 83 million subscribers, Elon Musk uses his Twitter account almost every day to give news of his companies, jokes or start controversies.
It’s also one of the platform’s harshest critics. He believes that freedom of expression is not sufficiently respected there and considers the moderation of content too severe.
Many American and foreign elected officials, on the contrary, consider moderation insufficient to combat hatred and misinformation. And take a dim view of the arrival at the helm of a libertarian businessman.
“Musk has not just bought a very expensive new toy, but a global community that includes 330 million regular users. Controlling such an important platform brings equally important responsibilities,” commented Jessica Gonzalez, co-director of the NGO Free Press.
She criticizes him in particular for using Twitter to attack people he does not like, often in a “childish” way, encouraged and helped by his “pack of loyal fans”.
“I hope even my worst critics stay on Twitter, that’s what free speech means,” Elon Musk tweeted Monday, ahead of the announcement.
– “A good person” –
Joe Biden, the president of the United States, said he was “worried about the power of the big social networks on our daily lives”, whoever the boss.
Some observers are concerned that he is allowing some people banned from the network to return, including Donald Trump, who was permanently suspended from Twitter in January 2021 for inciting violence.
The former US president, who has since founded his own platform, assured Fox News that he would not return, even if “Elon Musk is a good person”.
“I want to make Twitter better than ever by improving it with new features, making algorithms + open source + to increase trust, defeat spam bots and authenticate all humans” Elon Musk said in the statement, specifying wanting to “unlock the potential” of the network by “working with the company and the community”.
Elon Musk, the boss of Tesla and Space X, on December 1, 2020 in Berlin (POOL/AFP/Archives/Britta Pedersen)
In recent weeks, he has already suggested the addition of an “edit” button to correct a tweet after publication and changes to the paid subscription plan, Twitter Blue.
The whimsical billionaire had created a surprise in early April by announcing that he had acquired around 9% of the group’s shares. He had then been invited to join the Board, but had declined this offer, which would have reduced his room for manoeuvre.
The Board then adopted a clause to block Elon Musk, but the South African-born leader won by securing the funds and the support of certain shareholders.
“The proposed transaction is a substantial bonus and we believe it is the best choice for Twitter shareholders,” said Bret Taylor, Chairman of the Board.
© 2022 AFP
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