The news: Elon Musk has launched a hostile takeover bid for Twitter.
The brief backstory: In a regulatory filing, the Tesla CEO and world's richest man claimed that he had launched a hostile takeover of Twitter just days ago. He was then given a place on the board of the social media firm, but declined due to a last-minute twist.
Tesla stock closed down 3.66% after news of Musk’s bid, perhaps out of concern that Twitter’s rich and most famous fan will be distracted if a sale goes through. Besides running Tesla, Musk also heads SpaceX, The Boring Company, and Neuralink.
Will this happen? According to an SEC filing, Musk called this his “best and last offer” and added that if it was rejected, he would reevaluate his status as a shareholder. But could he even pull off a purchase of this size, given that most of his capital is tied up in Tesla stock?
Musk-see Twitter: What will Musk’s Twitter look like? He has posited that Twitter has the potential to be the leading global platform for free speech, key to healthy democracies flourishing—but he’s a businessman first and foremost. Musk’s ability to envision products that consumers fall in love with cannot be understated. He’s on the record that spam, bots, and scams degrade the typical user experience.
What’s next: At the same time, not everything that Musk considers ultimately comes to fruition, either due to his rapidly changing interests, delays, or other developments. That includes everything from Tesla’s Cybertruck to that humanoid robot he’s promising us for next year.
Saudi prince Al Waleed bin Talal, a major Twitter shareholder, has already said he would reject Musk’s offer, saying the price was too low.