It’s been a hot topic for most of April, after Tesla’s founder, Elon Musk disclosed that he purchased 9.2% of Twitter’s outstanding shares. Making him the biggest shareholder of the company. Twitter offered him a seat on the board of directors, which he then declined. Then he offered to buy 100% of the company for $54.20 per share, or about $43 billion in cash. Now, it seems that Twitter is ready to agree to the sale.
According to sources familiar with the matter, Twitter could announce the purchase as soon as today. The sources also added that it is possible that the deal collapses at the last minute.
It’s important to note that Musk is buying Twitter and not Tesla. Similar to how Jeff Bezos bought The Washington Post and not Amazon, a few years ago.
The current proposal of $54.20 per share is a 10% upside from where the stock closed at on Friday. Currently, in pre-market trading, the stock is up 4.58%, to $51.17 on this news. Of course, if the deal does fall through, Twitter’s stock could take a massive dive.
What could this mean for the future of Twitter?
Many are worried about what this purchase might mean for Twitter. While Musk has done great things with Tesla and SpaceX, he’s never run a social media company. He does seem to be wanting Twitter to roll out some more features that users want, like an Edit button – which Twitter did announce that it was already working on. And even showed how it would work.
But what some are worried about is, if Musk does buy Twitter, would he allow Trump to return? If he does that, it’ll make it easier for him to run in 2024 for a second term in The White House. It’s a very interesting way to do politics, Musk has said that he is “half Democrat, half Republican” but it’s unclear whether he supports Trump or not. Musk has talked about how Twitter is silencing conservative voices, and that’s probably the first thing he’d want to change.