There might be some significant adjustments coming to Twitter.
Following a sudden U-turn, Elon Musk is now in a position to take over the social media site, which are likely to result in a variety of technical and operational changes. Just before he decided to join the board of directors in April, Musk texted Twitter CEO Parag Agrawal, saying, “I have a tonne of ideas. I only want Twitter to be as fantastic as possible.”
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Before the deal can be finalised, there are some obstacles to be addressed. Musk’s $44 billion buyout offer for Twitter still needs to be accepted, and it appears that the parties cannot agree on finance parameters. Musk asked Twitter to discontinue all legal action in a filing with the Delaware Chancery Court, cancelling a court hearing that was still set for October 17, according to CNBC.
However, if the agreement is approved, analysts caution that Musk’s emphasis on unfettered free expression may offer additional difficulties, which might have significant ramifications for the online community only weeks before the U.S. midterm elections.
There may be a change in command
Cleaning house is expected to be Elon Musk’s first action after taking over. He is expected to start with Twitter CEO Agrawal, who took over the role last year after co-founder Jack Dorsey resigned. Despite the fact that the two had initially wanted to cooperate, text exchanges between Musk and his business partners show how unhappy he was with Agrawal’s direction.
Donald Trump and other accounts that have been suspended might be reinstated
Long before the tragic Jan. 6 uprising at the U.S. Capitol, Musk declared that his primary priorities would be to protect free speech on Twitter and grant access to the former president Donald Trump.
Less barriers to extremism and false information
Musk could overturn restrictions put in place by Twitter to make the platform safer for users who are more likely to be at risk, such as women, LGBTQ people, and people of colour, such as the prohibition on misgendering transgender persons, in addition to lifting the bans on a number of accounts.
An edit button might be added
As many people had been seeking for years, Musk recently expressed interest in allowing users to edit their tweets. In a survey he conducted in March, roughly 74% of his Twitter followers stated they were in favour of including the edit feature.
Musk bought himself some time on Thursday, after a judge accepted the billionaire’s request to halt a Twitter lawsuit to allow him to close his proposed $44 billion buyout of the social media company by Oct. 28.
Now comes the big question: how will he pay for it?
Musk said earlier this week he would buy Twitter for $54.20 per share, the price that was agreed in April, but included a condition that the closing of the deal be contingent on debt financing for the transaction coming through.
What is his financing plan?
For the acquisition, Musk has promised to contribute $46.5 billion in equity and debt funding, covering the transaction’s $44 billion price tag and closing costs. A total of 13 billion dollars in debt financing will be provided by banks, including Morgan Stanley and Bank of America Corp., to fund the purchase.
On Thursday, Twitter cited one of the banks as alleging that Musk had not informed them of his plans to conclude the deal. Banks were “working constructively to fund the closing” on or around October 28, according to Musk.
Musk’s $33.5 billion equity commitment would include his $9.6% ownership in Twitter, which is worth $4 billion, as well as the $7.1 billion he raised from equity investors, including Saudi Prince Alwaleed bin Talal and co-founder of Oracle Corp. Larry Ellison.
To cover the equity finance element of the agreement, Musk will still need to raise a further $22.4 billion in cash.
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