Elon Musk, $ 44 billion insurance and employee rights

Twitter’s purchase is one of the biggest deals in the business world (Getty)

With Twitter’s announcement Monday to agree to sell the company to Elon Musk in a deal considered one of the biggest in the business world, questions within the financial markets and decision-making circles have accelerated: Is it a commercial transaction with pure investment motives, whereby Musk seeks to raise billions of dollars. The additional addition to his vast wealth, or are there political ambitions that the famous American billionaire and the richest man in the world are trying to achieve, especially since Musk said: “I’m not interested in the economic aspects of the deal, but the agreement was rather implemented because of its importance for the future of human civilization ”?

Among the questions also, what is the relationship of the electric car giant “Tesla”, the most prominent of Musk’s companies, to the well-known social networking site transaction, especially with the announcement of the American billionaire that he has negotiated to “Twitter” buy. in his personal capacity, and that Tesla does not participate in the transaction? Where will the big deal, estimated at $ 44 billion, be financed?
Although the deal sparked much fear and anxiety among the influential circles in the US capital, Washington and other Western capitals, the announcement of the deal had positive reactions in the US financial markets, as it led to the closure of the Nasdaq index. . on the Wall Street stock market with a sharp rise on Monday, with growth stocks recording a boom late in the trading session, after Twitter agreed to be bought by Musk. The S&P 500 remained lower for most of the session, but turned into a positive area after the Twitter announcement.
Although the Twitter board has approved billionaire Elon Musk’s financial offer to buy Twitter, worth $ 44 billion, at $ 54.2 per share in cash, there is little information about the real goals of the richest man in the world has to buy Twitter, which has become one of the most important platforms Social Media.

If things are clear to the big contributors to Twitter, it is not so for the employees of the popular social networking platform

According to analyzes, the deal will increase billionaire Musk’s influence in the US market and Western circles, but it remains a deal fraught with financial risks. According to the American magazine Forbes, the billionaire Musk said he was not interested in the economic aspects of the transaction or the financial risks associated with it, but implemented the agreement due to the importance of Twitter as a social media platform for the “future of mankind”. civilization. “In terms of financing the purchase of the transaction, Musk does not have enough cash to pay the full value, so he will turn to large international banks to arrange a significant portion of the value of the large transaction. .
Forbes says Musk has provided $ 46.5 billion in financing to finance the Twitter deal, including obtaining a $ 12.5 billion bank loan by guaranteeing its shares in Tesla, and that about 66% of the value of the transaction was supported by its own financial. assets.
And after the shareholders’ approval of the deal, Twitter will join billionaire Musk’s business empire, which includes Tesla, whose market capitalization is estimated at about one trillion dollars, and whose board is led by the billionaire himself. This is in addition to the company “SpaceX”, which has an estimated market value of about 100 billion dollars. There are other new businesses owned by Musk, including the company “Nura Link”.
Of the other questions in financial markets that have so far sought an answer: Who will run Twitter after the transaction is completed and await shareholder approval, who will become the company’s CEO? And what role will billionaire Musk play in controlling messages and content posted on Twitter? Will Musk maintain the current management of the platform?
Analysts at the American “CNBC” channel rule out that Musk will retain the current CEO of the company, Parag Agarwal, who has experienced difficulties in dealing with the billionaire Musk, who recently became a member of the board of directors has after owning 9%. of Twitter shares.That there are friendly relations between him and the new owner, Mask. The platform’s current board of directors initially tried to reverse the deal, but then withdrew its position with an increase in the financial offering by Musk.

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Twitter chairman Brett Taylor said the board “conducted a deliberate and thorough process to evaluate Elon’s proposal with a doubled focus on value, security and funding.” He added in a statement that the board believes the deal is “the best way forward for Twitter shareholders.”
At the level of the position of major shareholders on the deal, Jack Dorsey, co-founder of Twitter, accepted Elon Musk’s offer to buy the social networking site for $ 44 billion. Dorsey said in a series of tweets that Musk is the only solution he trusts to run the company he co-founded in 2006. He added: “In principle, I do not think anyone should own or manage Twitter, it should be a public. Good and not a company.” “. He also made it clear that Musk’s goal of creating an extremely reliable and broadly inclusive platform was the right one. Dorsey thanked Musk. Add: This is the right way .. I believe in it with all my heart .

Billionaire Musk seeks to turn Twitter into a private company, but could retain a number of existing shareholders

Dorsey retired as Twitter’s CEO last year and has since shifted his focus to running his payment company, Block, formerly known as Square. The proposal by the head of the Tesla group to buy the giant social networking platform has raised fears of expanding its influence in the United States, especially as there are accusations of bullying, and these accusations contradict the goals of transparency and freedom of Twitter announced after the implementation of the agreement.
In turn, The Wall Street Journal says that billionaire Musk is trying to turn Twitter into a private company, but he can retain a number of existing shareholders. Musk said he wants to reduce Twitter’s reliance on advertising revenue for funding and make the popular social media platform more free and transparent, reducing its reliance on corporate advertising revenue, which typically affects the editorial level of media organizations and the transparency of publishing. restrict. It is reported that advertising revenue in the year 2021 accounted for 90% of Twitter’s total revenue.
Among the other questions asked and looking for an answer, the young billionaire Musk will follow the approach of his rival, billionaire Jeff Bezos, who bought the “Washington Post” and appointed an independent team to run the newspaper to manage, and the editorial management is far from his influence, or is Musk going to throw his weight on the management of the editorial and content that will be published on Twitter?
And if things are clear to the big contributors to Twitter, it is not so for the employees of the well-known social networking platform. Parag Agrawal, CEO of Twitter, told employees yesterday that there was uncertainty about the future of the social networking services company after billionaire Elon Musk’s acquisition of it. The company told employees, according to “Reuters,” Musk will join Twitter employees at a question-and-answer session at a later date.
When Agrawal employees asked questions about Musk’s plans for the company, the potential for retrenchments and the board’s rationale for accepting the deal, the CEO put off many questions, such as questions to ask Musk. However, he told employees there are currently no plans to lay off workers.
And Trust Securities said in an analysis note that Agrawal, which took over as CEO of Twitter at the end of last year, has made progress in introducing paid services such as subscription options for accounts on the site, adding, according to “AFP,” that “Musk’s short-term presence at this stage runs the risk of disrupting those efforts.”

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