The Acquisition of Twitter

Prompted by the ban of accounts such as The Babylon Bee, Elon Musk felt compelled to acquire Twitter to maintain the free speech that the platform promised.

The Game-Changing Takeover: Elon Musk's Monumental Acquisition of Twitter

In a dramatic turn of events that sent shockwaves through the tech industry and beyond, Elon Musk, the billionaire entrepreneur known for his electric vehicle and space exploration ventures, completed his $44 billion acquisition of Twitter on October 28, 2022. The takeover, which followed months of legal battles, public disputes, and uncertainty surrounding the future of one of the world's most influential social media platforms, marked a significant shift in the landscape of online communication. This page delves into the journey that led to Musk's acquisition of Twitter, the swift changes and controversial decisions made in the aftermath, and the potential future of the platform under its new ownership.

The Road to Acquisition:

Musk's interest in Twitter became apparent in January 2022 when he began investing in the company, eventually becoming its largest shareholder by March. In April, he announced his intention to buy Twitter outright for $54.20 per share, valuing the company at around $44 billion. Despite initial resistance from Twitter's board, which adopted a "poison pill" provision - a defensive strategy that allows existing shareholders to purchase additional shares at a discounted price, making the takeover attempt more expensive and less attractive for the acquirer - the company ultimately accepted Musk's offer later that month. The board's change of heart likely came after concluding that the terms of the deal were favorable for the company and its shareholders.

Legal Battles and Uncertainty:

The acquisition process was far from smooth, as Musk attempted to back out of the deal in July, citing concerns over the prevalence of bots and fake accounts on the platform. This led to a legal battle, with Twitter suing Musk to force the deal's completion. In a surprising twist, Musk reversed course in October, agreeing to proceed with the acquisition on the original terms.

Unprecedented Shifts and Controversial Moves:

With the change in ownership, Musk wasted no time in implementing significant changes at Twitter. He immediately ousted top executives, including CEO Parag Agrawal and CFO Ned Segal. Musk, a self-proclaimed "free speech absolutist," has hinted at his intention to ease content moderation policies and potentially reinstate banned accounts, such as that of former President Donald Trump. These potential changes have sparked concerns about the proliferation of misinformation and hate speech on the platform.

Stepping into Uncharted Territory:

As Twitter embarks on this new chapter under Musk's leadership, the company faces a myriad of challenges and opportunities. Musk's ambitious goals to transform Twitter into an "everything app" called X and significantly increase its revenue and user base by 2028 are not without their hurdles. The company must also navigate potential advertiser concerns, the burden of interest payments on loans used to finance the deal, and the possibility of staff layoffs.

The Future of Twitter:

The acquisition of Twitter by Elon Musk marks a significant shift in the social media landscape. With Musk at the helm, Twitter is poised to undergo a significant transformation in terms of its features and approach to content moderation. While some celebrate the potential for increased free speech on the platform, others worry about the consequences of relaxed oversight.

However, Twitter faces challenges in maintaining its user base, as recent reports suggest a decline in daily active users. According to NBC, Twitter's daily users in the U.S. have decreased by 23% since November 2022, compared to more modest declines or even growth for competitors like Instagram, TikTok, and Snapchat. Globally, Twitter's daily active users fell by 15% year-over-year, while its rivals saw gains.

Graph from NBC: