14th april 2022 twitter algorithm found two words trending elon musk & the other was twitter itself because the american tech baron elon musk had offered 43 billion$ in cash deal to buy out twitter.It was a day which a lot of twitter employee feared since elon musk declared his twitter share holding on 4th of April and was subsequently invited to be a part of its board which he accepted and then cleverly denied.
Then why do musk denied to be part of twitter board.
Answer is Elon musk is a good learner.He had learnt from his earlier mistakes in tesla.In the year 2018 he had openly declared that Tesla which is termed as a public company in US stock exchange would become private.Basically he wanted to make it private and offered $70 billion at a rate of $420 per share.He continuously dropped social media bombs by tweeting that he had secured funding too for this purpose.
In that process to make Tesla his private company he thought he was acting smart as immediately after his tweets Tesla shares price began to drop which he expected as he wanted to increase his 17 ℅ stake holding to a comfortable level for claiming single handed commanding position in Tesla which he loves. But all his efforts went into vain as US Stock Exchange Commission popularly known as SEC was quick to act as it considered his social media adventure as illegal and effectively bard him from acquiring any further shares of Tesla. SEC went a step further and Musk was legally handed over a list of issues related to tesla motors on which he have to take prior permission before writing anything over social media platforms.
Like a good high school student Musk learnt well from the Tesla episode of 2018 from SEC teachers.
As now when he had set his eyes to conquer the technologically advance social media platform twitter he is using his previous experience to take over twitter easily by playing with the US SEC laws.His play to take over twitter started from january 2022 as he started buying twitters shares. He halted for a while at the end of March as he reached the threshold 5% holding of twitter and as per US SEC laws any one having more than 5% holding in any US publically listed company has to declare his holding to SEC as well to the public.Actually he was unsure the way twitter share would move after this declaration as he wanted to become highest share holding person of twitter.So he took 4 days to inform SEC and by 4th April 2022 he had acquired 9% share of twitter and became the single largest holder of twitter.
By 8th April musk was invited to be the part of the board which he first accepted and then later rejected when he realised that once he is a board member he cannot exceed 14.5% share holding limit. He simply rejected the offer and a $43 billion deal to buy out twitter.
He is also not expecting a downfall in share price to have a good deal and that’s why he had started questioning the operational algorithm and openness of twitter.His offer of 43 billion at a rate of $54.20 shows his feeling of uncertainty related to share price as he wants to buy out twitter before any more share price surge.
As Elon musk has started an online poll and asking people weather taking twitter private shall be decide by board or by the share holder’s.So this article is for all those who are unable to decide what to vote.As musk had not made several things clear like what will happen with employee,professional culture of twitter & mainly he should not use the platform to silence his critics.