The Twitter teleserye

Tech billionaire Elon Musk wants to buy Twitter. (Photo: NDTV)

“I made an offer,” Elon Musk tweeted last April 14. The tech mogul made a bid to buy Twitter for $43 billion, according to a regulatory filing. Experts called out the move as a whim to gain attention, while others think it's a game changer that will end with Musk taking over the entire company. 

The billionaire, who owns 9.2% of Twitter—and was its biggest shareholder up until Vanguard Holdings, became the largest shareholder of Twitter after acquiring 10.3% days after Musk’s offer came in—has offered to buy the remaining percentage of the company. The price, which was pegged at $54.20 per share, is a 38% premium on the price before Musk’s investment in the company was announced, and a favorite Musk reference-slash-shout out to cannabis culture.  

In a letter to Bret Taylor, chair of Twitter’s board, Musk said he had invested in Twitter because, “I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy.” He added, “I now realize the company will neither thrive nor serve this societal imperative in its current form.” 

Musk said the cash offer was his "best and final offer," adding that if it's not accepted, he will have to reconsider his position as a shareholder.

For profit or for people

Elon Musk defended his offer to purchase Twitter, saying that he sees the acquisition as nothing less than a turning point for civilization. Moreover, he said the proposed deal is not about the economics of Twitter's business, but about ensuring Twitter remains a trusted platform for democracy—an overused vision statement we’ve heard many times before.  

"I think it's very important that there will be an inclusive arena for free speech," Musk said. "Twitter has become kind of the de facto town square. It's really important that people have the reality and the perception that they're able to speak freely, within the bounds of the law."

He then outlined a few of the practical moves he thinks Twitter should make for that to happen. These include open-sourcing its algorithm, and making apparent any actions that emphasize or de-emphasize people's tweets, "so there's no behind-the-scenes manipulation either algorithmically or manually.”

He also revealed he wants to take the social media platform private, saying he believes the company needs to be "transformed."

Twitter's move

Initially, Twitter spokesperson Brenden Lee said in a statement that the company would “carefully review the proposal to determine the course of action that it believes is in the best interest of the company and all Twitter stockholders.” 

Then on Friday, the social media company said it's adopting a limited-duration shareholders rights plan, a tactic known as the poison pill defense that's used by companies to fend off takeover attempts like the one facing Twitter. 

Tech insiders are dismissing Elon Musk's $54.20 per share bid to take the company private. Others are taking it very seriously and predicting Musk will prevail. The rest are watching from afar. "Well, this could be entertaining," the Wall Street Journal's editorial board opined.

Michael Nathanson of MoffettNathanson said he would urge Twitter "to take this offer and run," citing the company's many challenges. “Ultimately, we believe this soap opera will end with Musk owning Twitter after this aggressive hostile takeover of the company,” shared Dan Ives, a tech analyst at investment firm Wedbush Securities.

Twitter employees are expressing concern about the company's future. Workers at the social media company told Insider they're feeling frustrated and left out of the loop. "Many people are concerned about Musk's business practices and ethics changing the culture at Twitter," one employee spilled. 

If there’s anything we should be concerned about, it’s the idea of a social media platform being owned and controlled by a single person (remember Facebook?). Shouldn’t Twitter be decentralized as a protocol that powers an ecosystem of communication? Ultimately, what does it mean when a billionaire can single-handedly pounce on and eat up its prey, or in this case, platform?