Tech

Elon Musk wants to buy Twitter again for $44 billion. What changed?

Elon Musk wants to buy Twitter for $44 billion. Again.

The world’s richest man tweeted that he would like to continue the deal he first agreed to in April: He wants to pay $54.20 per share for a messaging service..

The difference between today and last spring, of course, is that in the meantime, Musk has been trying to back out of his signed contract to buy Twitter. And that Twitter is suing him to try to enforce that deal, and that both parties are currently in court, preparing for a trial due to begin on October 17 — less than two weeks away.

What changed? We don’t know yet. We know that Musk is unpredictable at best, and that we shouldn’t take everything he says or does at face value. Even if the two sides meet in a Delaware court on Tuesday to discuss the proposal, according to the New York Timesit does not mean that it will pass or that it will not have another reversal at some point.

Here, for the record, is Musk’s Twitter tweet promising to agree to a deal he previously tried to back out if the planned trial is stopped.

In the meantime, let’s briefly recap how we got here and discuss the challenges Musk will face if he truly owns Twitter.

tl;dr’s background: Last spring, Musk, one of Twitter’s most active users, acquired a 9 percent stake in Twitter, but said he had no plans to acquire the service. He then agreed to join the company’s board of directors, then decided he didn’t want to do it, and then announced that he wanted to buy Twitter. The company initially rejected his offer, and then, looking for a better alternative, agreed to his terms.

However, within weeks of the announcement, the tech stock market began to drop, as did the value of Tesla shares, Musk’s main source of wealth. Then Musk, who announced that one of his goals in acquiring Twitter was to rid him of the bots he felt were plaguing the service, began to complain that Twitter might have too many bots and that the deal was “couldn’t move forwarduntil he got more information about it. In July, Musk went on record saying he wanted out of the deal, and then Twitter sued him for breach of contract.

The fact that Twitter was trying to get Musk to buy a company that didn’t want him to own it in the first place, combined with the fact that most legal experts thought Musk had a bad court case, has led to a consensus among tech observers : At some point, Musk agreed with Twitter, paid some kind of multi-billion dollar fine and left.

The current news is erasing this possibility for now. So we’re back to the question we started asking back in April: what will Musk do with Twitter if he really owns it?

Remember, the reason Twitter was available for purchase in the first place is because the messaging service seems to be very important to at least part of its 238 million active users, but its business is nowhere near as big and valuable as , say Meta.

So to change that — and make Twitter worth at least as much as Musk would shell out for a $44 billion company — Musk will face major challenges: He will need to find a way to grow his user base, cut costs, and bring in more income.

But it became clear almost immediately that Musk had nothing but a hunch about what he would do with Twitter if he owned it. An early offer last spring, he offered some absolutely fantastic ideas to potential investors, such as finding another 750 million users within a few years.

And last week’s text messages that Musk received and sent last spring reinforced the notion that Musk, like some of his wealthiest fans, wasn’t sure exactly how Musk would do all this — they were just sure that the man who invented electric cars and sent rockets into space and then landed them back on earth. solve twitter.

Now – maybe – we will have a chance to see that they were right after all.




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