Elon Musk, the billionaire founder of Tesla, has a proposal for the shareholders of Twitter: He wants to buy it from them. At a staggering $18 billion valuation, that’s quite the offer — but it’s an offer that could be quite lucrative for both parties. In fact, Musk’s takeover bid isn’t just good news for Twitter — it’s great news for everyone. Let’s take a look at how Elon Musk buying Twitter can be one of the best things to happen to the social media giant and its users.
Tuesday’s shareholder vote endorsed Elon Musk’s $44 billion offer to acquire and take private Twitter.
The vote comes as Musk is attempting to have the agreement terminated. He questions Twitter’s self-reported proportion of bogus accounts and claims the business was not completely transparent in its explanation of how the calculation was made. Twitter has maintained that fewer than 5% of monetizable daily active users are spam or false, and it claims to have given Musk all the information necessary to fulfil the terms of the agreement.
Twitter filed a lawsuit against Musk for allegedly breaking the terms of the deal, and the Delaware Court of Chancery is presently hearing the matter. A trial is scheduled to start in the middle of October.
A former Twitter security head recently submitted a whistleblower complaint alleging gross securities violations by the business, and the court in the case recently permitted Musk’s team to alter their lawsuit against Twitter to incorporate those claims. Peiter “Mudge” Zatko, the whistleblower, gave testimony earlier on Tuesday before a Senate committee.
Meanwhile, SpaceX has had an amazing year so far in 2019. That is likely why Musk cares so much about controlling his public image and message on Twitter: to send his company in that same direction. If he can successfully navigate these litigation waters and come out victorious, it could be great news for shareholders who have seen shares of Tesla stock go down 40% since April 2018. And if he fails? It would probably just mean that investors might want to stay away from other companies run by erratic CEOs.