Business | Social Media
Elon Musk Just Bought Twitter. What Changes Should You Expect?
A finance guy on the future of this social media giant.
As I write this, various hashtags about the death of Twitter are trending.
Elon pulled it off and bought Twitter for $44 billion. What does this mean for the future? And how did we get here?
I’ve been a long-time investor, user, and student of the platform. Here are my predictions.
How we got here
The board initially rejected his offer and enacted a poison pill strategy, which allowed it to shop around for alternative buyers.
They didn’t find a better buyer. And in the meantime, Musk came forward with his financing solidified via an SEC filing: he had $46.5 billion, including $21 billion in his own equity (cash) and $25.5 billion in debt via Morgan Stanley.
This put the board in a position where they had to take the offer more seriously.
The board has a fiduciary duty: If they don’t act in the best interest of the shareholders, they have liability and could be sued. They could also take tremendous damage to their professional reputation.
