Elon Musk explains why he wants to buy Twitter

The bid to acquire Twitter is driven by a desire to create an ‘inclusive arena for freedom of speech’, rather than to make money. Elon Musk said this at a TED conference.

\”Twitter has effectively become a town square; it is crucial that people have an understanding and perspective of what they can say freely within the law,\” he added.

On April 13, the billionaire sent a filing to the SEC stating that he ready to buy the social network at a price of $54.20 per share — nearly $43 billion, given its shares outstanding. Twitter’s stock rose about 11% on the offer.

On the next day, Saudi Prince Al-Walid bin Talal Al Saud rejected Musk’s offer. Through the Kingdom Holding Company he controls about 5% of the platform’s shares.

I don’t believe that the proposed offer by @elonmusk ($54.20) comes close to the intrinsic value of @Twitter given its growth prospects.

Being one of the largest & long-term shareholders of Twitter, @Kingdom_KHC & I reject this offer.https://t.co/Jty05oJUTk pic.twitter.com/XpNHUAL6UX

— الوليد بن طلال (@Alwaleed_Talal) April 14, 2022

\”I don’t believe that Musk’s offer ($54.2) reflects the intrinsic value of Twitter, given its growth prospects. Being one of the largest and long-term shareholders of Twitter, Kingdom Holding Company and I reject this offer,\” he wrote.

In response, Musk asked how much of Twitter is owned directly and indirectly by Kingdom Holding Company, and what the company’s views on journalistic freedom of speech are.

Interesting. Just two questions, if I may.

How much of Twitter does the Kingdom own, directly & indirectly?

What are the Kingdom’s views on journalistic freedom of speech?

— Elon Musk (@elonmusk) April 14, 2022

At the TED conference, Musk noted that he has a ‘Plan B’ in case Twitter’s shareholders reject the offer. He did not disclose details.

According to Tesla’s chief, he does not intend to monopolise the social platform, but he has enough capital to acquire it.

\”Technically I can afford it. But this is not a way to earn money […]. I don’t care about the economic side of the matter,\” he explained.

Musk stressed that Twitter should use open-source algorithms to prevent any ‘behind-the-scenes manipulation’. He argued that users should be allowed to edit posts, and that the platform should actively combat fraud and spam.

Public opinion on Musk’s offer is divided. Some believe the billionaire could do a lot of good for Twitter, others call the move a ‘hostile takeover’. In particular, Dogecoin founder Jackson Palmer has voiced this view.

It takes some pretty impressive mental gymnastics to associate any type of \”freedom\” with the richest man in the world initiating a hostile takeover and forcing one of the largest public social media platforms private.

— Jackson Palmer (@ummjackson) April 14, 2022

\”It takes a lot of mental gymnastics to associate any kind of \”freedom\” with the hostile takeover initiated by the richest man in the world, to force one of the largest public social platforms to become private,\” he wrote.

According to The Information, Twitter’s board also does not share Musk’s optimism and intends to resist the takeover. The executives deemed the offer ‘undesirable’, according to the report.

In financial circles, sentiment toward the billionaire’s move was also mixed. According to CNBC, investment bank Stifel downgraded Twitter’s stock, explaining that the company is moving toward the ‘Elon circus’.

\”We downgrade Twitter to ‘Sell’ after Musk’s offer. We believe that in the near term the initiative sets a cap on the stock, disconnects quotes from fundamentals and creates significant downside risk if Mr. Musk walks away or sells his stake,\” the analysts explained.

Twitter shares closed the session on April 14 at $45.08. In premarket trading, the stock was higher — around $46.79 at the time of writing.

In April 2022, Musk became the largest shareholder of Twitter, buying 9.2% of the company’s shares for $2.89 billion. Earlier, the billionaire criticised the social network’s free-speech policy.

Earlier, the head of Tesla proposed reducing the price of Twitter Blue and giving users the option to pay for the premium service in DOGE.

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