According to technology experts, Musk plans to leverage Twitter to help develop a “everything app.”
Elon Musk, the billionaire who is set to buy Twitter later this week, walked into the company’s headquarters carrying a porcelain sink and tweeted, “Entering Twitter HQ – let it sink in!” Musk’s $44 billion (about Rs. 3,62,100 crore) contract to take Twitter private had a Friday deadline, yet the video he uploaded provided no indication that the transaction is finalized. Twitter and Musk spokespeople declined to comment, however Twitter did confirm that Musk’s video message was genuine. Musk also changed his Twitter handle to “Chief Twit” and his location to Twitter’s headquarters in San Francisco.
The eye-catching film, a classic Musk production, also drew attention back to the world’s wealthiest man and his on-again, off-again pursuit of the social network.
The Delaware Chancery Court set the Friday deadline to close the purchase in early October. It is the latest development in an epic struggle in which Musk signed an agreement to purchase Twitter, then attempted to back out, prompting Twitter to sue Musk to compel him to complete the transaction. If the two parties do not fulfill the Friday deadline, a November trial might be scheduled.
Pepperdine University law professor Robert Anderson said he fully expects the transaction to finish by Friday’s deadline but didn’t see much substance in Musk’s video. “Aside from the fact that he brought a sink,” he added, “I don’t see anything unique about it.”
Musk was slated to visit Twitter this week and would return on Friday if the sale is finalized, according to an internal document published in a Bloomberg News article.
His evident pleasure for visiting Twitter headquarters contrasted sharply with one of his previous proposals that the facility be converted into a “homeless refuge” since there were so few workers working there.
According to the Washington Post, Musk informed potential investors last week that if he becomes owner of Twitter, he intends to lay off three-quarters of the company’s 7,500 employees. The publication referenced papers and unidentified persons acquainted with the proceedings. Musk tweeted several hours after sharing his sink video that he was meeting “a lot of fascinating folks at Twitter today!” He didn’t elaborate.
One of Musk’s major challenges in concluding the sale was maintaining the finance committed nearly six months ago in place.
Earlier this year, a consortium of banks, including Morgan Stanley and Bank of America, agreed to lend Musk $12.5 billion (approximately Rs. 1,02,900 crore) of the money he needed to purchase Twitter and take it private. Solid contracts with Musk committed the banks to the funding, however developments in the economy and debt markets since April are likely to have made the conditions less appealing. Musk has said that his investment company would pay more for Twitter than it is worth.
What happens with the billions of dollars given to Musk by investors seeking ownership shares in Twitter is less apparent. Musk’s first equity partners ranged from the billionaire’s tech world colleagues with similar views on Twitter’s future, such as Oracle co-founder Larry Ellison, to funds owned by Middle Eastern aristocracy.
The more stock investors that contribute to the acquisition, the less Musk will have to pay on his own. The majority of his fortune is invested in Tesla, the electric vehicle business he founded. He has sold more than $15 billion (approximately Rs. 1,23,400 crore) in Tesla shares since April, presumably to pay his share. More deals may be on the way.
Musk, 51, has revealed few specifics about his ideas for the social media network. While he’s praised free speech and slammed spam bots since agreeing to acquire the firm in April, it’s unclear what he intends to do about either.
According to technology experts, Musk intends to utilize Twitter to help develop a “everything app” akin to China’s WeChat service, which enables users to video chat, communicate, stream video, scan bar codes, and make payments.
Musk’s interest in acquiring Twitter seems to begin in late March. That’s when Twitter claimed he approached members of its board, including co-founder Jack Dorsey, and told them he was buying up shares and wanted to join the board, take Twitter private, or launch a rival.
Then, on April 4, he said in a regulatory filing that he had become the company’s top shareholder after purchasing a 9% interest worth around $3 billion (roughly Rs. 24,700 crore).
Twitter first offered Musk a seat on its board of directors. Six days later, CEO Parag Agrawal said that Musk would not be joining the board. His offer to acquire the firm was soon accepted.
Inside Twitter, Musk’s offer was received with bewilderment and low morale, particularly when Musk publicly chastised one of the company’s senior lawyers engaged in content-moderation decisions.
Musk unexpectedly changed direction in July, announcing the withdrawal of his attempt to acquire Twitter. His claimed explanation was that Twitter had not been forthcoming about its issue with phony accounts, which he labeled “spam bots.” Twitter filed a lawsuit, and two weeks before the start of a five-day trial, Musk changed his mind again, announcing that he intended to finish the acquisition after all.
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pic by – Twitter