The Twitter’s Dramatic Deal – Elon Musk vs Twitter
Well, after a more than 6 months of long drama, Elon Musk finally buys twitter at a whooping $44 billion! Yes, you read that right. The richest man on the planet who has an ambitious aim to reach mars in near future has spent a fortune of $44 billion to buy one of the most popular micro blogging platforms.
Musk fires the top executives including CEO Parag Aggrawal and CFO right after he become the owner of Twitter. But wait, what happened to these people who got sacked? Well, according twitter’s employee compensation scheme twitter’s top executives stand to make a total of $88 million between them if Elon Musk ousts them and Parag’s is set to receive the largest payout of $38.7 million, due largely to the entirety of his shares vesting upon his firing. Well, that’s a lot of money mate! So it means if you are working in a company like twitter and then someone takes over and firers you, you still get a lot of money. Crazy world!
When and how it all started
– January 31, 2022: The richest man on planet earth starts buying shares of Twitter in near-daily installments, which made him major stakeholder with 5% stake in the company by mid-March.
– March 26, 2022: Musk played his game by saying he is giving a serious thought on building and alternative to twitter, questioning the platform’s commitment to “free speech” and whether Twitter is undermining democracy. Musk has 10 million followers on twitter. He also privately reaches out to Twitter board members including his friend and Twitter co-founder Jack Dorsey.
– March 27, 2022: Elon Musk started conversations with twitters’ CEO and board members about potentially joining the board, after privately informing Twitter of his growing stake in the company. Musk also mentions taking Twitter private or starting a competitor, according to later regulatory filings.
– April 4, 2022: This day, a regulatory filing revealed that Musk had rapidly become the largest shareholder of Twitter after acquiring a 9% stake (73.5 million shares, worth about $3 billion.)
– April 5, 2022: Elon was offered a seat on Twitter’s board on the condition that he would not take more than 14.9% of the company’s stock. CEO Parag Agrawal said in a tweet that “it became clear to us that he would bring great value to our Board.”
– April 9, 2022: Both, the CEO Parag and Elon Musk has made a good bond during the text message that showcased their love for engineering but it could not last long. A short-lived relationship between Agrawal and Musk sours after Musk publicly tweets “Is Twitter dying?” and gets a message from Agrawal calling the criticism unhelpful. Musk tersely responds: “This is a waste of time. Will make an offer to take Twitter private.”
– April 11, 2022: Twitter’s then CEO Parag Agrawal announces that Elon Musk will not be joining the board after all.
– April 14, 2022: Twitter revealed that Musk has offered to buy the company outright for about $44 billion.
The deal reminds me a schene from the movie Justice league
– April 15, 2022: The board of Twitter adopts a “poison pill” after Musk bid to buy the company.
– April 21, 2022: Musk lines up $46.5 billion in financing to buy Twitter. The board of twitter came under pressure to negotiate.
– April 25, 2022: Musk reaches a deal to buy Twitter for $44 billion and take the company private. The billionaire had said he wanted to own and privatize Twitter as, according to him, twitter is not living up to its potential as a platform for free speech.
– April 29, 2022: Musk sells tesla’s shares worth $8.5 billion to fund the purchase of Twitter, according to regulatory filings.
– May 5, 2022: The billionaire strengthens his offer to buy the microblogging platform with commitments of more than $7 billion from a diverse group of investors including Silicon Valley heavy hitters like Oracle co-founder Larry Ellison.
– May 10: Musk says he’d reverse Twitter’s ban of former President Donald Trump following the Jan. 6, 2021 insurrection at the U.S. Capitol, calling the ban a “morally bad decision” and “foolish in the extreme.”
– May 13: Musk announced to put the deal on hold as he needed to pinpoint the number of spam and fake accounts on twitter. Shares of Twitter tumble, while those of Tesla rebound sharply.
– June 6, 2022: Musk intimidated to end the agreement to buy Twitter, accusing the company refused to give him information he requested about its spam bot accounts.
– July 8, 2022: Musk declared to end his offer to buy Twitter as company failed to provide the information about the number of fake accounts.
– July 12, 2022: After consecutive threats by the billionaire, Twitter responded. It sues Musk to force him to complete the deal. Musk soon countersues.
– July 19, 2022: A Delaware Court judge scheduled the trial of the Musk-Twitter legal dispute in October.
– August 23, 2022: An ex security head of twitter testified that company misled regulators about its poor cybersecurity defences and its negligence in attempting to root out fake accounts that spread misinformation. Musk eventually cites the whistleblower as a new reason to scuttle his Twitter deal.
– October 5, 2022: Elon Musk offered to stay with original proposal to buy Twitter for $44 billion. Twitter accepted the offer saying it intends to close the transaction.
– October 6, 2022: Delaware judge delays Oct. 17 trial until November in order to gives time to both sides until Oct. 28 to reach agreement to close the deal.
– October 20, 2022: The musk effect has begun to appear on the employees of twitter. The Washington Post reported that the billionaire planned plans to lay off 75% of the company’s 7,500 employees as he told prospective Twitter investors.
– October 26, 2022: Musk posted a video of himself entering Twitter headquarters carrying a kitchen sink, indicating that the deal is set to go through.
– October 27, 2022: Musk says Twitter won’t become a “free-for-all hellscape.”
Well, that’s all about one of the biggest dramatic business deal in the history. If, anything you feel is missing here, you can certainly suggest us to change.