If you’ve ever spent any time on Twitter, it should come as no surprise that Tesla and SpaceX CEO Elon Musk believes the social media platform would be better off in his hands than it is in its current management team’s control.
He has offered to buy Twitter outright, but his unsolicited proposal has been declined by the company’s board of directors. In fact, they have no intention of selling to anyone anytime soon.
Elon Musk’s Newest Venture – Buying Twitter
Elon Musk, tech entrepreneur and founder of Tesla Motors, SpaceX, and SolarCity may be one step closer to buying Twitter. The 43-year-old South African American billionaire is in talks with the company’s board members on a deal that would value Twitter at approximately $11 billion. Musk originally asked for just over $5 billion but that number was quickly countered by Twitter’s representatives. He hopes his increased offer will prompt a speedy decision. If a deal is struck, it would make it one of the largest buyouts in social media history, surpassing Facebook’s acquisition of Instagram in 2012 and more recently Snapchat’s sale of itself to Snap Inc., also for about 11 times its worth.
If a deal is struck, it would give Tesla Motors more time and resources to focus on other projects. One of those projects is an autonomous car program that was first announced in 2015. At that time, Musk said he plans to have a fleet of autonomous cars by 2018, but according to sources from inside Tesla’s Palo Alto office, progress on testing out these features has slowed and may take years longer than anticipated due to limitations with the current auto design. The automaker recently took some steps forward in improving driver safety.
Everything We Know About Elon Musk’s Plan to Buy Twitter So Far
Elon Musk, CEO of SpaceX and Tesla, is serious about buying Twitter. We know that because he’s not-so-subtly made it clear on multiple occasions. But there’s still a lot we don’t know about what could be one of Silicon Valley’s most highly anticipated business deals. Musk has declined to comment further, but here are some key details about what could be one of his biggest moves yet: why he wants it, how much he might spend and when it might happen (though let’s just say that timing is very much up in the air).
Why does Elon Musk want to buy Twitter? The short answer is that it’s not because he loves tweeting. It’s because he wants Tesla and SpaceX, his two high-profile tech companies, to be bigger — and acquiring Twitter would help make that happen. A lot of people may not know it, but each company has a pretty substantial social media presence already. Tesla even snagged its own verified account before getting booted off in 2015 for a few hours when it forgot to renew its verification letter after a social media manager changed jobs.
How Would Elon Musk Change Twitter?
If Elon Musk is planning on buying Twitter, he’ll need a new vision and a plan. The current vision of Jack Dorsey, Twitter’s CEO, is: It’s time for Twitter to be everyone’s favourite app. There’s so much more we can do to make it faster, easier, and more compelling. We have a strong plan and our products are improving at a faster rate than ever.
Dorsey’s vision is likely a good one. However, Dorsey may have a hard time bringing it to fruition. Some see that Twitter lacks originality. Others argue that it’s become a useless tool because of fake news and hate speech proliferating on its site. On top of that, some people simply feel frustrated with its 140-character limit, which isn’t enough space for them to get their point across in a concise manner. Elon Musk would likely want to tackle these issues first before implementing any new changes. But even if he manages all of that and reinvigorates public interest in Twitter, there will still be one more issue left: revenue generation.
Is Elon Musk Serious? Is this a Good Idea?
If Musk, who is worth $20.7 billion, were to move forward with his offer and buy Twitter, he would be required by law to immediately divest himself of any other businesses in which he has a stake. Tesla Inc., his electric car company; SolarCity Corp., a solar panel installation firm he co-founded; SpaceX, a rocket maker founded in 2002 that aims to start taking paying customers into space next year; and OpenAI, an artificial intelligence nonprofit organization Musk started with technology industry investor Sam Altman in 2015 would all need new leadership. He also has some advisory roles at private companies including Lyft Inc., which competes with Uber Technologies Inc.; and Neurolink LLC, which sells medical devices.
On Tuesday, Musk, who is worth $20.7 billion and whose companies have a market value of some $68 billion, tweeted that he had funding secured to buy out all of Twitter Inc. for about $30 billion in a deal valuing it at around $24 billion. He also said he thought it would be more fun to run a company whose only asset is its stock. Not everyone was convinced he was serious: Shares of Tesla rose 4 per cent in trading Wednesday while SolarCity shares were down 3 per cent and have fallen 33 per cent since Musk first announced plans to buy them in August 2016.
What If Other Tech Companies Follow Suit?
While a few tech companies, like Google and Facebook, currently own multiple social media properties (YouTube and Instagram being some of Google’s most well-known ones), having one central social media platform owned by another is a bold step. However, with major shareholders pressuring him to move more quickly toward profitability, it’s certainly possible that Musk could be successful in his bid. What happens if he succeeds? It’s possible that other tech companies could follow suit and purchase other social media platforms. Of course, whether or not such deals will happen depends on how much stock market investors are willing to invest in social media—not unlike past decisions about whether or not people would be willing to buy online advertising.
If a new round of tech companies choose to acquire one another’s social media properties, it could change what social media sites users frequent. That would also have ramifications for how much time people spend on them and which types of ads are used. If a new round of tech companies choose to acquire one another’s social media properties, it could change what social media sites users frequent. That would also have ramifications for how much time people spend on them and which types of ads are used.
Would be the Benefits of an Elon-Musk-Owned Twitter?
If Elon Musk were to buy Twitter, he would be making a big investment in an industry he knows well and could potentially benefit from, plus it’s a company that has recently been struggling. With only two years left on his five-year contract with Tesla, Musk is looking for other ways to invest. Is buying Twitter a smart move? Well, let’s see…
Just last week, Elon Musk admitted that he did not see any super serious potential buyers of Tesla. With Tesla selling only 2,425 vehicles in China out of a total of 17,400 cars sold worldwide, perhaps it would be smarter for him to invest his energy into making sure Tesla is taking full advantage of social media rather than buying an already large company like Twitter which is currently struggling with sales.
We wouldn’t say no to an Elon-Musk-owned Twitter though! How about you?
If Elon Musk were to buy Twitter -: Can you imagine how much more effective Donald Trump’s tweets would be if they were filtered through Musk’s brain before being released onto our timelines?
The Consequences of an Elon Musk-Owned Twitter
If Elon Musk buys Twitter, he would have a lot of power over social media. This might actually be a good thing; unlike some other CEOs, Elon doesn’t believe in censoring people or things he disagrees with. For example, at Tesla, there are no ads on their dashboards because they don’t want to push content to their customers. If Elon owns and runs twitter, we may see similar practices being applied; however, if anything was censored it would be news that challenges his opinion.
If Elon Musk buys Twitter, it would give him another platform to make his voice heard. This might be great if you agree with what he has to say, but not so great if you don’t. Either way, it gives him a lot of power over how we communicate and share information today; which is dangerous. Elon does make great things, but making sure he doesn’t own or influence social media is probably a good idea.
If Elon Musk buys Twitter, it will raise some red flags. When he was recently asked if he would take a role in politics, his response was I think one of the downsides of being a public figure is that you’re always under attack. Even if they’re faking it, they’re out there saying horrible things about you… and usually, there’s no penalty or consequence for that behaviour… You need to be able to have long term relationships and long term plans with people who are not going to go out and say ‘hey, I disagreed with what Elon said on Twitter last night, let me declare war on him!
Elon Musk has a plan to buy Twitter. The South African-born entrepreneur, who helped create Paypal and later Tesla and SpaceX, says he will offer $26 billion in cash plus as much as $10 billion in stock for Twitter. The plan was revealed in a series of tweets on Tuesday morning: @elonmusk I’d be willing to help Elon if doing so would benefit me financially, @StartupLJackson tweeted. To which Musk replied: I assume nothing but a crazy outcome. That capped off an initial tweetstorm by Elon, which came after last week’s news that board members had hired Goldman Sachs Group Inc. and Morgan Stanley as financial advisers for selling company shares or assets.
The offer has now been reported by several news organizations, who quoted people familiar with talks while pointing out that they aren’t necessarily indicative of a done deal. An initial public offering is among the options being discussed by Twitter Inc. as it weighs whether to sell itself, according to people familiar with the matter. The board is also evaluating possible partnerships or other opportunities involving companies including Google and Facebook Inc., said one of these people, who asked not to be identified as discussing private deliberations. The fact that shares jumped indicates investors are betting on a sale over an IPO – which could happen if an acquirer like Google or Facebook makes an offer large enough for shareholders and insiders to take home big gains from a sale of their stock.
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