What we know as Elon Musk closes his deal to buy Twitter
Written by B87FM on October 28, 2022
For many market watchers and even informal observers of headlines within the final a number of years, right now is the morning after a giant day: Elon Musk, celebrated area entrepreneur, prolific and provocative Tweeter and the world’s richest man, has lastly closed his buy of social media platform Twitter.
This is what you – and Musk’s 110 million followers – have to know concerning the deal, in real-time and because the handover progresses.
Elon Musk confirmed the deal in lower than 280 characters: He is the brand new proprietor of Twitter.
That tweet was shortly met with a reply from European Union Inner Markets Commissioner Thierry Breton to Musk, an everyday critic of worldwide regulators.
Musk says he’ll “dig into” shadow bans as hate speech, slurs seem on Twitter
Stories started surfacing early Friday that hate speech and racial epithets are flying on Twitter. Holocaust deniers have been additionally reported on the platform.
Twitter customers have been fast to notice Friday that they have been starting to see adjustments in the best way the platform labored and the way it was eradicating bans on customers beforehand restricted on the location, generally as a direct results of tweeting Musk.
In reply to that, Musk tweeted Friday that he’ll be “digging in” extra right now on lifting shadow bans and rolling again restrictions on customers.
Far proper commentators, together with well-known YouTuber Tim Pool, additionally weighed in about adjustments.
Customers who had both had their content material moderated or knew individuals who had encountered Twitter bans or shadow bans additionally tweeted Musk immediately asking to have these lifted and listed the names of individuals they felt ought to be introduced again to the platform.
When did Elon shut his deal for Twitter?
A number of information retailers reported late Thursday that, after months of authorized wrangling and public acrimony, Musk had closed the $44 billion deal and fired prime executives together with the corporate’s CEO Parag Agrawal.
Twitter chairman Bret Taylor eliminated that title from his Twitter bio.
A deal is finished? Elon Musk takes control of Twitter, sources say
Musk could have to pay as a lot as $200 million to fired executives
Agrawal, head of authorized, and chief monetary officer Ned Segal and coverage and belief Vijaya Gadde all had strict contractual agreements in place for what may occur within the occasion of a takeover.
MarketWatch reports that the three personal about $65 million value of Twitter inventory and get one other $119.6 million in inventory if they’re terminated.
“In whole, Gadde is about to stroll away from Twitter with the largest haul: Almost $74 million. Agrawal and Segal aren’t far behind her, although, at roughly $65 million and $66 million, respectively,” MarketWatch stated.
Will Elon Musk fireplace extra Twitter staff?
Twitter’s earlier administration already deliberate to slash payroll by about $800 million and make deep cuts to infrastructure together with information facilities by the top of 2023.
Stories of extra austere measures below Musk – together with shedding 75% of the corporate’s 7,500 staff – circulated earlier than the deal closed. Musk informed staff at Twitter’s headquarters on Wednesday “that he would not plan to chop 75 p.c of the workers when he takes over the corporate, based on folks acquainted with the matter,” Bloomberg wrote.
Twitter workers fret forward of deal deadline:Musk reportedly wants 75% cut to Twitter workforce
What did Elon Musk purchase Twitter for?
Musk wound up paying his unique bid worth: $54.20 a share, or roughly $44 billion.
On the time of his April supply, the quantity represented a 33% premium to Twitter’s inventory worth. However the firm has since been hit by a rout in tech shares, record-high inflation squeezing buyers and a darkening view of a recession on the horizons.
Musk has been vocal about overpaying concerning the buy, though Twitter had closed at $53.70 at shut of commerce Thursday, a marked upswing from its lowest level of $32.65 in July post-bid.
“Though clearly myself and different buyers are overpaying for Twitter proper now,” Musk just lately stated, “the long-term potential for Twitter is an order of magnitude increased than its present worth.”
– Riley Gutiérrez McDermid
Why does Elon Musk need Twitter?
The deal offers the Tesla billionaire management of one of many world’s strongest megaphones.
It additionally offers Musk entry to the information of almost 400 million customers and the power to convey again folks and organizations beforehand banned or sidelined by Twitter, together with former President Donald Trump
Who will run Twitter now?
For now, it seems Musk is helming Twitter.
On Wednesday he modified his Twitter bio to “Chief Twit” shortly earlier than strolling into Twitter’s San Francisco headquarters carrying a porcelain sink, resurrecting a meme that has been web lore for years. “Let that sink in,” he tweeted.
– Jessica Guynn
Is Donald Trump coming again to Twitter?
Now that Elon Musk is working Twitter, the Tesla billionaire is more likely to reverse a everlasting ban towards Trump for inciting violence throughout the Jan. 6 assault on the Capitol.
Musk has indicated he would permit Trump again on the social media platform the place the previous president had greater than 88 million followers.
“Can be nice to unwind everlasting bans, aside from spam accounts and people who explicitly advocate violence,” Musk texted Twitter CEO Parag Agrawal in April, based on courtroom filings.
At a convention in Could, Musk stated: “I do suppose it was not right to ban Donald Trump, I believe that was a mistake.”
– Jessica Guynn
Will Elon Musk’s buy of Twitter imply extra hate, extremism on-line?
When Elon Musk first agreed to purchase Twitter in April, he stated the social media web site has the potential to turn into “the platform totally free speech across the globe” and he would unlock it.
Musk, who closed the $44 billion deal on Friday after a months-long authorized combat, has described himself as a “free speech absolutist” and expressed concern over the best way Twitter moderates its customers.
Now that Musk owns Twitter, will he make good on his promise to loosen content material moderation guidelines within the identify of “free speech?”
Musk stated Thursday he doesn’t need the location to turn into “a free-for-all hellscape the place something might be stated with no penalties” in a message to advertisers, who analysts have stated could also be scared off by Tesla CEO’s stance on free speech.
“Along with adhering to the legal guidelines of the land, our platform have to be heat and welcoming to all, the place you possibly can select your required expertise based on your preferences,” Musk stated in a be aware posted on Twitter.
Critics have expressed concern that Musk would permit dangerous or extremist speech on the location and specialists have warned that loosening content material moderation might trigger real-world hurt.
Conservatives, in the meantime, have celebrated Musk’s Twitter takeover, as many accuse social media platforms of routinely censoring their voices, emotions additional fueled earlier this yr after former President Donald Trump was completely banned from Twitter.
Musk has indicated he would let Trump, who was banned for inciting violence throughout the Jan. 6 assault on the Capitol, again on the location.
– Amanda Pérez Pintado
How will advertisers reply to a Twitter with much less moderation?
Elon Musk, a self-proclaimed “free speech absolutist,” has been advocating for much less content material moderation on Twitter since his plans to take over the corporate have been first introduced in April.
“We wish to have the notion and the fact that speech is as free as potential,” Musk stated in April on the TED2022 convention. “Is somebody you do not like allowed to say one thing you do not like? And if that’s the case, then now we have free speech.”
The thought appears to harken again to the early days of Twitter; former CEO Dick Costolo known as the location the “free-speech wing of the free-speech get together” within the early 2010s.
Since then, Twitter has adopted stricter insurance policies to fight disinformation, misinformation and hate speech. The platform’s guidelines prohibit focused harassment, COVID-19 misinformation and election manipulation.
Musk’s discuss softening a few of Twitter’s guidelines to any speech has raised purple flags for advertisers.
Shortly after the Wall Road Journal launched a report about Madison Avenue’s issues, Musk issued a press release on Twitter saying the social media platform “clearly can not turn into a free-for-all-hellscape, the place something might be stated with no penalties.”
Musk’s tweet was addressed to advertisers, the corporate’s major income.
“Social networks are attempting to do a greater job eradicating hateful content material, content material that’s antisemitic, content material that’s blatantly misinformation,” stated Ari Lightman, professor of digital media and advertising at Carnegie Mellon College. “That’s one thing that advertisers fear about.”
– Bailey Schulz