When Elon Musk landed a deal to purchase 10 percent of Twitter, it seemed evident that the billionaire would push for full ownership.
After less than two weeks of haggling and negotiations, Musk has finally gotten his wish and now owns one of the largest and most popular social media platforms.
Behold, Twitter's New Landlord
On April 25th, sources across the tech and finance landscape confirmed that Twitter had accepted an acquisition offer from Elon Musk.
The Twitter-Musk deal happened pretty quick. In one of the biggest deals in tech history, Musk offered a massive premium for the company, $54.20 a share, a price that took his total offer to $44 billion.
The last time Twitter's stock traded that high was at the close of October 2021. With the company's plunging stock price and issues with monetization, it seemed prudent to accept Musk's offer and move on. Now that Musk has acquired Twitter, analysts expect the company to go private again.
A Timeline Of This Testy Deal
The tale of how we got here is pretty straightforward. Musk, a popular Twitter user for years, had expressed concerns about the platform's issues with free speech and user protections. Ultimately, the Tesla and SpaceX CEO decided to do something about it, announcing he had purchased a 9.2 percent stake in Twitter on April 4th.
As soon as Musk's stake in Twitter hit the headlines, the company's stock price soared, reminiscent of last year's meme stock frenzy and the massive spike in Dogecoin's price following Musk's tweets about the cryptocurrency. It showed that Twitter still had value, and Musk was on a mission to bring that value to the surface.
No Board Seats For Elon
Musk began crowdsourcing suggestions upon purchase, and Twitter's board offered the billionaire a seat. An SEC filing and Parag Agrawal, the company's chief executive, confirmed Musk's role on the board.
Normally, Musk would have jumped on the offer to join Twitter's board. Seeking radical changes, a board seat would undoubtedly help. But accepting a board seat would mean Musk couldn't own more than 15 percent of the company.
In a report, The Verge pointed out that Twitter's executives would also be subject to the cap on shared ownership. Sensing the limitations accompanying such a move, Musk said he wouldn't be joining Twitter's board - the first indicator that he was headed toward total takeover.
It's A Musky Takeover
A week after his share purchase, Musk confirmed he had made an offer to buy the company. Musk says he wants to bring some meaningful changes to the platform - including an "Edit Tweet" feature, an open-source algorithm, reduced content moderation, and a higher limit for removing "offensive" tweets.
Musk said taking Twitter private was the only way to bring his vision to reality. The billionaire gave an ultimatum - either Twitter accepted his buyout offer, or he'd dump all of his stock in the company.
This ultimatum turned out to be the real kicker for Twitter. Musk could handle losing some pocket change to a stock dump, but a selloff of this magnitude would undoubtedly crater Twitter's stock price. Twitter caved.
Less than two weeks after his offer, Elon Musk became Twitter's full owner. The billionaire is still devising his broad vision for the social media platform. The edit button and loosened content moderation measures are currently top priorities.