#WhatTheFAQ: Why did Elon Musk acquire Twitter?

It was in April this year that Musk disclosed that he held more than 9% of Twitter Inc's shares, making him Twitter's largest individual shareholder
Pic: Edexlive
Pic: Edexlive

It has happened. Elon Musk has officially taken over Twitter. On Friday, October 28, Musk sealed the deal to buy out the microblogging platform for $44 billion. After months of uncertainty on the matter, Musk was forced to meet the deadline set by a US court to fulfill the terms of the agreement he had reportedly reached with Twitter Inc for the acquisition. Here's how it went down:

How did the deal pan out?
It was in April this year that Musk disclosed that he held more than 9% of Twitter Inc's shares, making him Twitter's largest individual shareholder. On April 25, it was revealed that Musk and Twitter had come to an agreement for Musk to acquire Twitter for $44 billion, at $54.20 per share. This latter value and Musk's purchase of Twitter shares from the beginning of this year was the centre of the storm that led to Twitter filing a lawsuit against the billionaire after Musk backtracked on his proposal for the acquisition. Musk then filed a counter-lawsuit against Twitter. And then on October 4, Musk renewed his offer to buy out Twitter for $44 billion. The Delaware Chancery Court, where the lawsuits were filed, gave Musk time until today, October 28, to close the deal, failing which the court would proceed with the trial in the case filed against him, and eventually force him to fulfill the deal he promised in April.

What plans does Musk have for Twitter?
Well, for starters, Musk wants to rid Twitter of spam accounts. While reports before the takeover suggested that he planned to fire 75% of the Twitter staff, Musk on Wednesday, October 26, assured employees that he will not do so. He also plans to make better use of content-management algorithms that can curate Twitter feed for users based on their preferences, much like Facebook and Instagram. Furthermore, Musk has said that he will protect free speech by reducing censorship on Twitter and enabling journalists to share information without "establishment bias". Finally, he aims to prevent Twitter from becoming an "echo chamber" of hate and division, although how he plans to do that is as yet unclear. Oh and Musk has also said that he will reverse the permanent Twitter ban placed on former US President Donald Trump. 

What steps did he take immediately after the takeover?
Despite assuring Twitter employees that there will not be major layoffs, one of the first steps Musk took after buying out the microblogging platform was to fire some of the top executives, including the Chief Executive Officer (CEO) Parag Agarwal. He has reportedly accused senior officials at Twitter of "misleading" him and withholding information about the platform from him.

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