Elon Musk strikes deal to buy Twitter for $44bn.

text

Tesla CEO Elon Musk stands to be the next owner of Twitter, having pledged roughly $44bn to buy the social media platform.

Musk, a self-described “free-speech absolutist”, has promised to develop new features including “authenticating all humans”, as he described it in a statement quoted in a press release announcing the acquisition on Monday.

It is unclear how Elon Musk intends to make money from the platform, but he has suggested in interviews and tweets that he intends to loosen the restrictions around what can be said on Twitter.

The richest man in the world, has frequently expressed concerns that Twitter’s control of free speech goes too far – despite it being one of the least policed social media platforms.

He has also promised to make Twitter’s algorithms public so users can see how content is promoted or demoted, and rid the platform of spam bots that interfere with the user experience.

So far, the question of whether Donald Trump, and others who have been banned or suspended from the site, will be allowed back has gone unanswered, both by Eloin Musk and by Twitter executives.

Can Musk turn Twitter around?

As part of the takeover, which is expected to close later this year, Twitter’s shares will be delisted and it will be taken private.

Musk has suggested this will give him freedom to make the changes he wants to the business. Among other ideas, he has suggested allowing longer posts and introducing the ability to edit them after they have been published.

Twitter shares on Monday closed more than 5% higher after the deal was announced.

But the price remained lower than Mr Musk’s $54.20 per share offer, a sign that Wall Street believes he is overpaying for the firm.

Musk has said he doesn’t "care about the economics" of the purchase. However, he will take on a company with a chequered record of financial performance. Despite its influence, Twitter has rarely turned a profit and user growth, particularly in the US, has slowed.

The company, founded in 2004, ended 2021 with $5bn in revenue and 217 million daily users globally – a fraction of the figures claimed by other platforms such as Facebook.

Tackling cryptocurrency scams

Musk said a top priority would be eliminating “the spam and scam bots and the bot armies that are on Twitter”.

The proposed solution is to authenticate “all real humans” or to have accounts overtly linked to other personal identifiers, whether it be a phone number, an email address or a photo. Dogecoin’s co-founder Billy Markus has complained to Twitter’s support team about the platform being flooded with the giveaway crypto scams, where fake Twitter handles impersonate famous personalities in the crypto market or influential celebrities.

The price of Dogecoin shares popped following news of Twitter’s buyout deal with Musk, who has been a proponent of the cryptocurrency and has gone so far as to call himself the “Dogefather”.

We offer trading in crypto CFDs including Bitcoin, Ethereum, Ripple, Litecoin and we many more are on the way! Sign up and start trading now! https://live.crm.puremarketbroker.com/vu/signup

Disclaimer: All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by Pure Market Broker constitutes an investment recommendation, nor should any data or Content published by Pure Market Broker be relied upon for any investment activities.

Pure Market Broker strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions

Pure./Trade is a website operated by Redpine Capital Limited, a Cypriot Investment Firm, which is authorised and regulated by the Cyprus Securities and Exchange Commission, licence number 391/20. Its registered office at Spyrou Kyprianou 65, Crystalserve Business Center, Ground Floor 4003, Limassol, Cyprus.

Risk Warning Trade: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Restricted regions: The Company does not provide investment and ancillary services in the territories of third countries.

Pure Community

Join Into Our Social.

Related News.

Advanced Forex Trading Strategies: Breakouts, Trend Following, and Range Trading

Advanced Forex Trading Strategies: Breakouts, Trend Following, and Range Trading

In the dynamic world of forex trading, mastering advanced strategies can be a game-changer for traders seeking to elevate their skills and capture more profitable opportunities. In this article, we will explore three powerful advanced forex trading strategies: breakouts, trend following, and range trading.

Week Ahead-US Jobs Report, FOMC Minutes, What to Know this week

Week Ahead-US Jobs Report, FOMC Minutes, What to Know this week

It will be an eventful week, the ISM manufacturing report, the fourth of July Holiday, the Fed Minutes, and the nonfarm payroll report. Wall Street is starting to believe in those Fed dot plots and this weeks economic data points may provide more evidence for the hawks.

Advanced Forex Trading Techniques: Exploring Scalping, Swing Trading, and Position Trading

Advanced Forex Trading Techniques: Exploring Scalping, Swing Trading, and Position Trading

In the world of forex trading, there are various strategies that experienced traders employ to maximize their profits and navigate the dynamic currency markets.