Let that sank in !
This week’s most popular Twitter was born, a short copy from Twitter’s new buyer, Mr. Musk, and his Internet hacks. He walked into Twitter headquarters with a sink, accompanied by such a copy. Such a common phrase expressed in spoken English itself means to ponder and ponder carefully. But Chinese netizens also have their own localized translations:
I’ll take over!
You taste, you taste carefully.
Enter the sinking market.
Let us sink together.
Let’s suffocate together.
Still bought it, the dust of the $44 billion transaction has settled
Chief Twit is Musk’s new Twitter profile. After more than half a year of acquisition wars, “Twitter boss” has finally become Musk’s new title.
On October 27, Musk finally completed a $44 billion deal to take Twitter private and has taken charge of the company. Banks also began releasing $13 billion in cash to Musk to support the acquisition, and the deal was finally completed within the court-mandated deadline (17:00 on the 28th).
Looking back at the past six months, Musk and Twitter have provided a wealth of conversation for the onlookers. He has been pulling with Twitter for half a year, long-term tug-of-war, and insistent remarks are worth scrutinizing. The two parties in this acquisition not only have a hundred intentions, but after so long in the middle, the final transaction price is still 44 billion.
On the occasion of this deal, let’s review the timeline of Musk’s acquisition of Twitter:
January: Musk begins privately buying Twitter shares.
March: Musk owns more than 5% of the stock, but does not disclose the matter within 10 days as required. During this time, Musk came into contact with Twitter founder Jack Dorsey.
▲ Jack Dorsey
April: Musk, who owns more than 9% of the shares, has become Twitter’s largest shareholder, and its CEO Parag Agrawal invites Musk to join the board. Musk refused to join the board and offered to buy all of Twitter for $44 billion. In order to prevent Musk’s acquisition, Twitter’s “poison pill plan” will issue a large number of new shares. Musk said the board did not respond to the takeover request, or would use a “tender offer” to complete the acquisition. Twitter compromised, agreed to buy. Musk said he had raised $43.5 billion for acquisitions, and he even sold $8.5 billion in Tesla stock. Jack Dorsey backs Musk: “He’s the only solution I trust.”
May: Musk tweets that trading is on hold pending more information on fake Twitter accounts. Musk Says Twitter CEO Proves Spam and Fake Accounts
June: The acquisition passes U.S. antitrust scrutiny, and Musk sends an email to lawyers saying Twitter’s refusal to provide user group data on request could result in a “termination of the merger agreement.” Twitter responded that it will continue to work with Musk to ensure that the two parties complete the transaction as agreed.
July: Musk sent Twitter a letter of termination of the acquisition, which was deemed invalid after he believed that Twitter had violated various terms of the agreement. Twitter believes that Musk, after entering into a binding acquisition agreement, is now “rejecting his obligations to Twitter and its shareholders because the transaction he signed is no longer in his personal interests.” So it sued Musk, arguing that Musk Breach of a $44 billion buyout agreement, hoping a court order will force Musk to complete the takeover at $54.20 per share.
August: Musk again sends a termination letter to Twitter, notifying the termination of the acquisition agreement.
September: Musk’s $44 billion deal to buy Twitter has effectively been terminated after the company reached a deal with and paid a whistleblower $7.75 million, Musk’s lawyers say. At the same time, someone reported that Twitter has serious problems in many aspects such as user privacy and network security. Musk plans to invite the whistleblower to attend the trial in October.
October: Musk proposes to continue taking Twitter private at the original offer of $54.20 per share, asking Twitter to stop the lawsuit. Subsequently, Twitter confirmed Musk’s offer and expressed its willingness to complete the deal. The judge postponed the original 10.17 trial date and asked Musk to complete the merger by 17:00 EST on October 28. If the deal has not been completed by then, a trial date will be scheduled in November.
On October 28, foreign media reported that Musk’s acquisition of Twitter had been completed, and Musk had fired several executives including the original CEO and CFO.
Musk owns Twitter, what the future holds
Without a doubt, this is the most talked about acquisition of 2022.
The acquirer itself has its own traffic, which basically appears in the headlines every week, and every move attracts attention. The acquired party is one of the most influential social networks, an important platform for users to express their opinions, and was once Trump’s “main position”.
How much attention has this acquisition received? Even the acquirer Musk wants to use its popularity for marketing. Not long ago, Musk’s Boring Company launched “the best perfume in the world”, and Musk tweeted to promote the $100 bottle of burnt hair fragrance. The promotional copy was simple and rude “Come and buy my Fragrance so I can buy Twitter.”
The onlookers may also really want Musk to buy Twitter, and they showed off the 1W bottle in less than a few hours.
In addition to watching the excitement, many users really expect Musk to make some changes to Twitter to make Twitter more usable.
Looking at Musk’s acquisition, he has drawn a lot of cakes himself, such as combating robot navy, authenticating user information, adding edit buttons, cheaper membership versions, hidden ads, cryptocurrency payment options…
In his first conversation with Twitter employees, he also said that Twitter could learn two Chinese products in the future—WeChat and Tiktok.
There is no WeChat-like product outside of China, and you basically live on WeChat in China. If we can reproduce this with Twitter, we’ll have great success.
We can hone Twitter and make it fun in the same way we did TikTok. Tiktok feeds you information through algorithmic filtering, while Twitter is selecting a chronological stream of information. I think Twitter can better inform people about important information.
▲ Picture from: Data Hash
Of course, for Twitter employees and advertisers, the acquisition represents a lot of uncertainty.
Foreign media have reported that Musk will lay off 75% of his workforce after the acquisition. Musk, who took the sink into the Twitter building, did not forget to reassure people, and when he met with Twitter employees, he personally denied the authenticity of the reports. However, employees are not completely at ease. After all, 75% of the employees are not laid off, and it may be 50% or 25%.
▲ A picture that Musk sent to his biographer, and a friendly exchange with Twitter employees
Twitter advertisers are concerned that Musk will change the platform’s advertising policies. After all, Musk has said he hates advertising before, and he even discussed with Jack Dorsey the possibility of Twitter giving up advertising and generating revenue in other ways. Fortunately, after the dust settled, Musk also changed his mind and said that “Twitter is determined to become the most respected advertising platform in the world.”
At the same time, Musk also said that Twitter will not become a “hell of indulgence” after content moderation is relaxed, and it will not harm the potential interests of advertisers.
But in any case, when a number one net red with a lot of money has a social platform. The future changes of this social platform are likely to be as dramatic and possible as the acquisition itself.