Elon Musk is trending in the current affairs news of India and global news in 2022 because of his desire to buy Twitter. Elon Musk is everything that you would want to see in a billionaire in a movie. He is intelligent, takes risks, and is outspoken. Moreover, he can be funny. Not necessarily the way he says things, but the kind of stuff he does. First, we talk about his achievements. He is the person who believed that electric vehicles were indeed the future. At a time when nobody trusted electric vehicle technology, he went on to create Tesla, the most reliable and famous electric vehicle company in the world. Afterward, he claimed to have the vision to conquer Mars by sending humans there. People thought he was crazy, but the guy has set up Starlink that has already sent hundreds of satellites into earth’s orbit, and people believe if one person can achieve the target of making humanity a multi-planetary civilization, then only Musk can do it. Recently, he commented that nuking Mars poles is a good idea to evaporate Mars ice.
Now see the other side of Elon Musk. We saw him smoke marijuana on a podcast and make fun of Biden when he didn’t give due credit to Tesla for the electric vehicle revolution in the USA. He called him ‘Damp Sock Puppet.’ In short, with Elon Musk, you get all the flavors that range from being a genius to stupidity that one doesn’t associate with a man of his caliber. This unpredictability makes him great, and one can never predict what his next move could be. We saw an example of this very behavior last week when the world’s richest man put forward the offer to buy Twitter for $43 billion ($54.20 a share in cash). This development shook the entire internet, Now we hear that Twitter has adopted the poison pill strategy to prevent the takeover.
Development Before That:
Elon Musk started to trend in the latest current affairs news of 2022 around 2 weeks ago when he asked Twitter users if they needed an edit button. He is a heavy Twitter user, so people thought this was just a normal tweet. However, later, Elon Musk said he had bought 9% of the Twitter share. Furthermore, on April 14th, he tweeted, “I made an offer.” It was pointed to buying Twitter. All of this development sent the Internet into debate and discussion about why he was after Twitter.
Elon Musk’s Official Stand On His Offer:
Elon Musk has said that he believes that Twitter should go private to make it truly a platform that promotes free speech. He clarifies that he doesn’t want to make a profit from Twitter. He is more interested in bringing reforms that could make Twitter a torchbearer of democracy and free speech.
We already know that the line between free speech, hate speech, and misinformation is becoming thinner by the day. Therefore, Elon Musk might be showing good intentions. However, experts believe there is not much he can do to make Twitter more powerful and it is already a great platform. But even here, Elon Musk can prove everyone wrong as similar negative views floated when he went about building Tesla to bring electric vehicle revolution.
What is Poison Pill and what does the Twitter board think?
Twitter has already adopted a poison pill strategy. It means it has given its existing shareholders the right to purchase newly issued shares at a discount to the market price, which makes the idea of a hostile takeover extremely challenging and expensive. Moreover, Elon Musk made an offer to purchase Twitter at $54.20 per share /cash, which several experts called not enough. Twitter shares touched $80 per share in February 2021. Therefore, the board members are unlikely to say “yes” to Elon Musk’s offers. Although Elon has said that it is his final and best offer.
When Elon announced that he owned a 9.1 percent share of Twitter, even the board had sniffed his intention. The Twitter board offered a board member seat to Elon Musk, and he first said yes to the offer, then said no. If Elon had said yes, then he couldn’t have purchased more than 15% of the total share of Twitter, as per the conditions and rules related to being a board member at Twitter. All of this happened in a matter of 2 weeks and caught everyone off-guard.
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Is Elon Musk serious about buying Twitter?
This is another question that is natural to come up in the public mind. Is he really serious about buying Twitter? Has he really thought about the whole process? Most experts believe one cannot say it for sure. There are reports that his financing is not ready in a way that can complete the overtake as quickly as he intends to do. Moreover, he has a history of making similar takeover offers but not going through with them. But some experts believe he is serious as he has already purchased 9.1% shares and he made his intention public by tweeting that he had made an offer to Twitter.
News is coming from sources that Elon Musk is not altering his decision to buy Twitter. He has secured funding of $46.5 billion in total to go ahead with his plan. The funding will consist of $33.5 billion from his side and another $13 billion is likely to come from Morgan Stanley in the form of debt.
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