Tesla tycoon’s Twitter bid is seen as a battle for control of algorithms

Experts, however, say Musk’s offer may not be accepted by Tesla’s board.

Tesla tycoon Elon Musk’s hostile takeover bid on Twitter is seen by analysts as a battle for control of all the powerful algorithms influencing our news feeds. They believe this could be the change Twitter needed, although at the same time there are concerns about the impact of the privatization of the popular media platform, in particular on freedom of expression and the stories.

On Thursday, Musk announced in a filing with the U.S. Securities and Exchange Commission that he had offered to buy Twitter for $43 billion, for $54.20/share in cash. He said, “Twitter has tremendous potential. I will unlock it.

Its offering price represents a 38% premium to Twitter’s April 1 close, the last trading day before the billionaire’s controversial 9% stake in the microblogging platform went public.

“Will not be accepted”

Kashyap Kompella, CEO of global tech industry analytics firm RPA2AI Research, said Twitter’s value as a global city square was not reflected in this assessment. “Elon Musk’s offer is unlikely to be accepted by the board for financial reasons because the offer is above the current share price but below the high watermark price,” he said. declared.

Moreover, as Kompella pointed out, “there are deep issues about private companies and private billionaires who have so much influence over public opinion, election results and popular narratives of the times” .

Sanchit vir Gogia of Greyhound Research said Elon Musk should be given credit for the timing of the offer. “Twitter has only recently seen leadership and board changes, which has been a source of discontent and panic for many shareholders. Not everyone is aligned with the current product strategy and the Twitter’s Global Management Approach The fact that the company’s stock has been somewhat choppy over the past year confirms the need for immediate change at Twitter.

Lloyd Mathias, business strategist and independent board director, called Elon Musk’s bid to buy Twitter and take it private as bold and bold. “But it fits perfectly with his disruptive thinking and his rethinking of whatever activity he has intervened in – electric vehicles, space travel or tunnel transportation.”

Based on his tweet polls over the past few days, Mathias felt that Musk clearly sees greater opportunities for monetization than current management has considered in the platform.

Giraj Sharma, founder of brand consultancy Behind the Moon, said: “The first thing that strikes me is that Elon Musk will merge Twitter with Starlink through SpaceX. And it will increase the user base phenomenally.

However, he pointed out that Musk had not revealed how he would tap into the “enormous potential” he sees in Twitter and how he would make it the epitome of free speech for now. “But somehow, what little free speech remains,” he says.

Published on

April 14, 2022

Sharon D. Cole