News hardware Elon Musk could FINALLY buy Twitter in the next few days
The great technological and economic saga of recent months could well be over by the end of the week: billionaire Elon Musk now seems determined to finalize the takeover of Twitter in the coming days.
It’s a story whose ending was quite difficult to guess, but if we are to believe the latest revelations, it should soon end: we are talking, of course, of the takeover of Twitter by Elon Musk. Indeed, the billionaire boss of Tesla and SpaceX, among others, would have decided to finish by Friday, October 28.
Takeover of Twitter by Elon Musk, a chaotic affair
Remember that the beginning of this story dates back to last April: six months ago, Elon Musk publicly announced his desire to buy the social network Twitter for a sum amounting to 44 billion dollars. At first perplexed, Twitter’s board of directors finally agreed to this takeover, which then promised to be historic.
But announcing a change of ownership was still prematurebecause it was without counting on the changing spirit of Elon Musk, who then set in mind to determine what percentage was the amount of fake accounts present within the social network. For Twitter, it would amount to 5%, but the billionaire did not believe it. Waiting to know more, he announced on May 13 to pause the takeover of the platform.
Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of usershttps://t.co/Y2t0QMuuyn
— Elon Musk (@elonmusk) May 13, 2022
The rest, we know. Twitter’s board quickly said it intended to drag Elon Musk to court to make him respect the terms of the contract: either definitively conclude the takeover, or pay a billion dollars in cancellation fees.
Negotiations were held for long weeks because Elon Musk wanted to avoid trial. But in the absence of an agreement, the trial had become a certainty last July: it was to be held in October, until the billionaire changed his mind again. The boss of Tesla no doubt understood that he had a good chance of losing the lawsuit.
The takeover of Twitter finalized this Friday?
For several weeks, Elon Musk has been more involved than ever in the takeover of the social network. According to a Bloomberg source, it would now only be a matter of days before he officially became the owner of Twitter. The documents would have been signed by the different parties, and now only one thing would be missing: the money lent by the banks to finalize the takeover.
Because even if the fortune of Elon Musk is estimated at around 220 billion dollars, the latter consists mainly of stocks and financial bonds. Raising 44 billion dollars remains complicated, even for the richest man in the world : he therefore had to call on various banks to find no less than 13 billion dollars to complete his envelope.
According to Bloomberg, this sum will be on the table next Friday, which will allow Musk to afford Twitter… finally!
Who will benefit from Elon Musk’s takeover of Twitter?
Will this takeover really conclude this incredible story involving an absolutely staggering sum? Not necessarily. First of all because it is a very bad operation for the banks which participate in its financing : indeed, if the situation was favorable last April, the economic context has deteriorated sharply in six months. The banks that had contractually committed themselves with Elon Musk for this takeover were then blocked and could no longer back down: according to Deutsche Bank, of the 13 billion loaned to Elon Musk, 500 million should be lost by these banks due to an unfavorable situation associated with Twitter’s debt.
Next, for Twitter employees, the situation could also be catastrophic : In recent days, Elon Musk has said that he plans to lay off up to 75% of social network staff after takeover. Of the 7,500 current employees, only 2,000 would remain, and moderation teams could be the most affected by this layoff plan.
Finally, for users, the impact of this takeover and of Elon Musk’s desire to make Twitter a space for free expression is still uncertain. But we imagine that after having spent so much money to get our hands on this platform, the billionaire will want to add his personal touch. We already know that he aims to increase Twitter’s revenues to $26.4 billion in 2028, compared to $5.1 billion in 2021. We are curious to know how he intends to proceed. In summary, it is unclear who will benefit from the takeover of Twitter, if not, perhaps, the ego of its (future) new owner.