5 Keypoints After Elon Musk “Fast-Takeover" of Twitter

Feel Free to add your comment and expectations on this deal:) 

On Tuesday, April 25, Eastern Time, $Twitter(TWTR)$ officially announced it would accept Musk’s acquisition of $54.2 per share, and the transaction valued Twitter at about $44 billion. 

After the transaction is completed, Twitter will no longer be listed on the New York Stock Exchange and complete its delisting.The transaction that will shift control of the social media platform populated by millions of users and global leaders to the world's richest person. 

Regarding Twitter, Musk has his own plans. Although not officially acquired yet, Musk has made a number of proposals, including but not limited to relaxing his content restrictions, such as suspending the ban on Donald Trump's account; eliminating fake and automated accounts on the platform and reducing bot bots; and getting rid of Advertising-based revenue model, etc.

You may be interested: To-do List Preview! What Will Musk do if he bought Twitter?

Musk has previously "spoiled" what changes would be brought about by taking control of Twitter in the future: adding a button to modify tweets would be one of the most immediate and popular changes.As agreed by Musk and Twitter's board, Twitter shareholders will receive $54.2 per outstanding share in cash at closing. The offer represents a premium of about 38% compared to when Musk suddenly disclosed his 9% stake in Twitter earlier this month.

1. How to Trade the Opportunity?

After the official announcement, Twitter’s stock price rose slightly to nearly $52, and closed at $51.70 on the day, an increase of 5.66%-although there is still a distance from Musk’s offer, at least to a certain extent, the haze of the past two weeks has been cleared.Previously, we can see many trading strategies shared in side Tiger Community, for like Sell Twitter Call at $55.

Related Reading: Twitter Option Trading: Review and Consideration

2.What Selfishness does Musk Has?

Taking Twitter private is also one of the key goals of Musk’s acquisition.Some people say that Musk, as a businessman, acquires or privatizes Twitter, and the consideration of commercial interests has a large component.

His selfishness may include the following 3 aspects:

  • Obtain freedom of speech to the greatest extent and strengthen the public opinion field for self-expression. For Musk, Twitter is not only a place for his emotional catharsis but also a public opinion field for expressing his views.
  • Make maximum use of his own huge traffic and use the smallest cost to do the biggest promotion for Dogecoin, Tesla, SpaceX, etc.
  • Will Musk also participate in the presidential campaign in the future to seek political power? After all, during the Russian-Ukrainian war, Musk made many remarks on Twitter, even did not forget to promote his Starlink products while asking Putin.

3. What Was the Fate of Twitter After The Takeover?

Twitter will be delisted after the takeover.In terms of funding, according to a filing by Musk with the U.S. Securities and Exchange Commission (SEC) last week, he has locked in enough funds to complete the acquisition.Specifically, Musk obtained a total of $25.5 billion in loan commitments from Morgan Stanley Senior Funding and other financial institutions under Morgan Stanley and other financial institutions, and he also pledged to invest $22 billion in loans. in acquisition transactions.

4. Who Will Lead the Future Twitter?

It is reported that Musk and Twitter's current CEO Agrawal are unlikely to cooperate much.

Recommend Reading: Musk's Bid to Buy Twitter is Hindered? The "Anti-Musk" is Imminent!

Parag Agrawal became Twitter's current CEO in November 2021. After succeeding the former CEO Jack Dorsey, his term is only five months now.Former CEO Dorsey is also the founder of Twitter and is good friends with Musk, but Dorsey previously held only a small stake in Twitter and had small control right.

Bloomberg once pointed out that Musk was not happy when Dorsey left Twitter, so he took a 9.2% stake and bought Twitter to avenge his friend, which seemed logical.

5. How Much Control Will Musk Wield?

Twitter said in a statement that it would be acquired by an entity owned by Musk, though the statement did not disclose how Musk would control Twitter in the future.

At present, Musk serves as the CEO of Tesla, the CEO of SpaceX, a private American space company. SpaceX has not yet been listed, and the offline market is valued at $100 billion. Musk also has other start-up companies, such as Neuralink, a "neural chain company" that studies the connection between human brains and computers, and the "tunnel company" Boring Company, which develops and builds urban underground transportation systems.

For Twitter, will Musk learn from Jeff Bezos and let an independent management team run the privately acquired Washington Post? Will he be a hands-off boss? This is still suspenseful.

The Twitter acquisition and the going-private transaction are expected to close in 2022. 

From the ground to outer space, Musk's business has spread to all corners of the planet, and now he wants to expand his business territory to the virtual world. 

We'll soon see what history is about to happen on the world's most influential social platform, positive or drama comes?

Let's wait and see.

# Will Elon Musk Still be the Richest Man in 2023?

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  • Big Cat
    ·2022-04-26
    I think Elon will contribute positively to the society.
    However, he is too rushed on the new changes & it's too hard for ppls to accept the new changes as he's always thinking a few steps ahead [Grin]
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  • hd87
    ·2022-04-28
    Thanks for sharing :)
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  • Ericdao
    ·2022-04-28
    Ho no, now he's stuck with twitter. Let's see how he get out of it [Happy] [Happy]
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  • JC888
    ·2022-04-26
    U believe in private held company tt said profit not importnt?
    Will there be exodus upon purchase complete?
    Of crse Elon hopes enemy remain as users becos if user-ship falls will be disinvestment ya.
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  • Lostinroom
    ·2022-04-28
    Hopefully Elon can make twitter better
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  • V K
    ·2022-04-28
    Pls like tyvm‌[Happy] ‌
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  • Serene70
    ·2022-04-26
    even twitter is gonna be privatised. Pte equity fund is trending
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  • JesseRW
    ·2022-04-26
    This article is so professional, thanks a lot!
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  • Carolq
    ·2022-04-28
    Interesting to watch what happened next
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  • blue sky
    ·2022-04-27
    有钱真的是可以任性. [鬼脸]
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  • jw_la
    ·2022-04-26
    Thanks for sharing. Very detailed article
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  • YTGIRL
    ·2022-04-26
    This is definitely a very impressive analysis.
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  • ___ _
    ·2022-04-26
    is this a reward post? [shy]
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    • ___ _
      didn't see any coin banner..
      2022-04-26
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  • Mui fung
    ·2022-05-13
    Good
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  • Niskil
    ·2022-04-28
    😐
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  • AshlynnLee
    ·2022-04-28
    [Like]
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  • octa8
    ·2022-04-28
    [Like]
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  • ec1111
    ·2022-04-28
    like
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  • OO_898
    ·2022-04-28
    Like
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  • Markiey
    ·2022-04-28
    Oo
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