Twitter to be Sold to Elon Musk

 


Twitter to be Sold to Elon Musk



Twitter to be Sold to Elon Musk


Twitter, the popular social media platform, has reached an agreement to be sold to Elon Musk, CEO of Tesla Motors and SpaceX, in a deal worth $44 billion. According to the Wall Street Journal’s initial report, Musk will purchase all outstanding shares of Twitter stock from the company’s shareholders at $27 per share—approximately 22% higher than the closing price of Twitter stock on Wednesday night. The transaction will likely occur later this year or early next year.


The History of Twitter

The world’s most popular social media platform has a lot of history packed into its 11 years of existence. Twitter can trace its beginnings back to Jack Dorsey sending out his first SMS message on March 21, 2006, inviting his friends and coworkers in San Francisco to join an experiment with him called Twitter (or twttr). To date, that tweet has been retweeted more than 2 million times and liked over 1.3 million times. In 2008, Twitter released its official iPhone app, which eventually became one of Apple’s most downloaded apps for iOS devices. And in 2009, it started running ads for small businesses on their Promoted Tweets tab.


Analyzing the Deal

When considering any major business deal, there’s one key question you have to ask yourself: Is it worth it? In Elon Musk’s case, with $44 billion at stake, investors had better hope he answers yes. The price tag is high — Twitter’s market cap was just $13 billion as of October 19. But shareholders are reportedly looking forward to a payout of more than three times what they paid for their shares at last year’s IPO.


The Pros and Cons

On one hand, it’s likely that Elon Musk will drive Twitter forward and make it more than just a social media platform for celebrities. He may even try to turn it into his next generation rocket development company (which he actually calls SpaceX). If that’s his goal, Musk is well on his way toward amassing a huge following since he has 2.4 million followers of his own on Twitter. In addition, being able to maintain two active companies would be an impressive feat for any CEO or entrepreneur – so if anyone can do it, he can.


What Next For Twitter?

While not a household name, Elon Musk has been called one of Silicon Valley’s most prolific and visionary inventors. He is known for his high-profile business successes, such as Tesla Motors and Space X. A look at his record over past decade reveals that he has an impressive track record of executing on ideas like these that many others fail to see through. If we are going by sheer numbers, then Twitter will fall right into line with these other ventures of his. What do you think will happen with Twitter under Elon Musk? Will it succeed? Will he use it? Whatever your thoughts are, drop us a line in comments below!


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Who Will Buy Whatsapp?

There are speculations on how much Facebook will spend on Whatsapp and there is talk that Elon Musk has made a bid for Twitter. With all these happening right now, we can’t help but ask: who would you most like to see own Whatsapp? What’s your bet? $1 billion or more? More than $3 billion? What do you think they’d do with it? (Just one dollar please.)


How Does This Deal Affect Google And Facebook?

Google and Facebook rely on Twitter for content to post on their own social networks. The more tweets, Facebook posts, and other publicly shared posts that these companies can show users, the more time users will spend on those sites. This is how they make money: by showing relevant ads to users. If Elon Musk buys Twitter, he could start posting all of his tweets directly to Instagram (owned by Facebook), so that users don't have any reason to go back to Twitter. That would be bad news for both Google and Facebook's bottom line; it's something those companies should keep an eye on as Elon Musk purchases shares of Twitter in order avoid being left behind in a world where fewer people use their services.


What Happens To Jack Dorsey, CEO Of Twitter?

Well, Jack Dorsey—the CEO of Twitter—might need a new job soon. Elon Musk, entrepreneur extraordinaire, just announced on his personal account that he’s going to buy Twitter and take it private. He didn’t say much beyond that and has yet to confirm that he’s actually purchased it (or even if he plans on doing so), but investors might want to keep an eye on Dorsey and what he does next: whether he sticks around or starts a company of his own.


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My Thoughts On The Deal

Many people have criticised Musk for buying Twitter, but I think it makes a lot of sense. He is one of Twitter’s largest users (using his personal account as much as a promotional tool for Tesla Motors) and there are rumours that he might be launching an alternative social network based on real-time news, so why not buy Twitter itself? It would give him control over one of the biggest web properties in the world, which is invaluable. I suspect there’s more to Elon Musk than meets the eye. Maybe we will find out what his true plans are when he announces how he intends to run Twitter at some stage in future... only time will tell!


What Will The Future Look Like For Content Creators?

Twitter has been in flux since its sale and was quickly turned into a dumping ground for every celebrity tweet that could find no other home. Elon Musk buying Twitter will mean some kind of seismic shift in how we view content creators—but that may not always be a bad thing. On one hand, it may lead to more abuse from microcelebrities trying to pump up their follower counts. On the other, it might also usher in an era where a host of new content curators rise above celebrity narcissism and provide us with vital analysis of society (think FutureTimeline)—just don’t expect your elected officials to contribute much useful commentary.


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