#TwitterShares #stocks #TWTR #ElonMusk #TwitterStock #Buy Twitter stock
Source: Freepik
Brief history of the deal
Elon Musk has completed the $44 billion purchase of Twitter.
The Delaware Court of Chancery has set a deadline to close the deal. Reminder, Musk had previously tried to pull out of the deal, blaming Twitter for the large number of bots on the platform. In reality, however, it was an attempt to lower the cost. Now everyone is waiting for further developments, in particular mass layoffs of employees.
Employee layoffs and further company policies
At the moment, the new owner has said goodbye to Twitter’s top managers: the CEO, CFO and head of legal, trust and security. Of course, leadership positions will be taken over by members of Elon Musk’s team, who will lead Twitter’s revamped policies.
On the subject of massive layoffs, Elon Musk has dropped his intentions, and has said he will not be laying off 75% of the company’s staff. However, the new owner intends to significantly cut costs at the company by cutting teams among other things, the extent of layoffs has not been disclosed yet. The number of Twitter employees is around 7,500. Information that the timing of the layoffs will have a negative impact on year-end compensation has been denied by Elon Musk.
Back in the spring, Elon Musk announced his plans to make Twitter private, abolish content moderation rules, downsize its staff and tap into new sources of revenue.
According to unofficial reports, around 50% of the staff is expected to be laid off.
The new owner of the company also announced to advertisers that the Twitter platform would become a privileged advertising platform.
As for censorship for certain types of comments and blocking of celebrities, such as D.Trump, here Mr Musk said that he would create a board that would form rules for content. The removal of blocking for users will be gradual and is also likely to be reviewed by the council.
The sacked Twitter executives, according to the agreement, were to receive hefty compensation of between $20 million and $60 million. However, verified sources say that Elon Musk had grounds for dismissal that could invalidate the agreements, and it is unlikely that the top managers will receive their millions.
User reaction to the change of ownership and company policies
Users’ opinions on the change of Twitter’s owner were divided, ranging from rave reviews to promises by prominent personalities such as producers Shonda Rhimes, Ken Olin, to leave the site after it was taken over by Mr Musk. Within 12 hours of the deal being made, the number of racist slurs had risen by 500%. according to the Network Infection Research Institute. Advertisers are unlikely to want to place their ads next to messages containing hateful or racist language.
IPO and share price
Twitter decided to have its initial public offering (IPO) on the New York Stock Exchange because Facebook’s initial public offering on the Nasdaq was plagued by technical glitches.
Twitter Inc. sold 70 million shares at $26 apiece during its IPO, and has already opened with a soaring price of $45.10, adding 73%.
At the time of writing, shares of Twitter Inc. have locked in at a price of $53.69.
Source: TradingView
Bottom Line
There is no telling how the Twitter situation will unfold next, we just have to watch and expect that the notorious freedom of speech will not turn into hate speech. The great support for Elon Musk by many celebrities and ordinary users, gives us hope for an optimistic outlook for the company.
How to find the most relevant Stocks Trading Platform? – you can go through our comparison table and Best Stock Trading Platforms Review.
Latest News