Elon Musk hears criticism and does not hesitate to respond to it.
Like a boxer who takes his opponent’s blows in the first rounds of a boxing match, a billionaire tends to the observation stages. He observes his opponents trying to find their weaknesses before delivering the fatal blow.
Eccentric Tesla CEO (TSLA) – Get a Tesla Inc . report A $44 billion buyout bid, or $54.20 per Twitter (TWTR) – Get a Twitter, Inc. report. Share, to buy the social network he describes as the “physical town square” of the Internet.
Musk explains that his decision was motivated by a desire to restore the principles of free speech on the platform. The deal alarmed Democrats who say they fear the world’s richest man will take the podium to conservatives, especially extremist and far-right voices. They also say they fear an explosion of hate speech in the name of freedom of expression.
So far, Musk has said that his Twitter will tolerate comments that fall within the legal scope and respect current legislation in each country in which the social network operates. Basically, as long as something is not against the law, it will be accepted on Twitter.
The deal also raises questions about its financing. The billionaire managed to secure $46.5 billion in a loan from banks and a marginal loan against his Tesla shares. And that’s the $21 billion portion that’s the focus right now. Musk, who sold millions of Tesla shares for $8.5 billion, wants to reduce this cash contribution associated with his personal fortune, According to Reuters.
New financing can come in the form of preferred or common stock. Musk is trying to persuade some of Twitter’s major shareholders, hedge funds and the wealthy to offer preferred equity financing for the acquisition.
The billionaire is also trying to persuade some shareholders not to sell their shares as part of the offer, but to remain shareholders in the group even when it is delisted.
Jack Dorsey, the founder and former CEO of Twitter, is among the contributors, and Musk has reportedly told about his plans.
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Musk himself appeared to confirm this information by commenting on a Twitter post that mentioned the Reuters story.
“Also, as mentioned earlier, we will try to retain as many legal contributors to privately owned Twitter as possible!” The billionaire who has an estimated net worth of $258 billion as of May 3, said, According to the Bloomberg Billionaires Index,.
Fee for commercial/government users
Beyond finance, another question many observers are asking is what economic model does Musk intend to adopt at Twitter? Billionair Mention the idea of removing ads from the platform, and in particular for subscribers of Blue, a subscription service offered by Twitter that gives users access to premium features, such as the ability to un-tweet. These features are available anywhere you use the Twitter account you signed up for.
“Everyone who subscribes to Twitter Blue (i.e. pays $3 a month) should get a check mark for authentication,” Musk suggested on April 9, referring to one of the new products. He added that “the blue color already has 20 seconds to adjust the tweet feature.”
Musk has just revealed the first ideas of the economic model he intends to put in place once the Twitter acquisition is completed in October if all goes as planned. The entrepreneur points out that the platform will remain free for regular users. But on the other hand, Twitter will charge small fees to businesses, corporations, and government users.
“Twitter will always be available to regular users, but perhaps at a slight cost to commercial/government users,” Musk told his more than 90 million Twitter followers on May 3.
The billionaire did not elaborate: How much would this small cost? Who falls into the category of government?
Twitter Blue currently costs $2.99 per month. However, Twitter derives its revenue primarily from advertising.
Much speculation currently surrounds Musk’s intentions regarding Twitter. The Wall Street Journal I just mentioned The Mongols intend to re-offer the company’s shares for public subscription again within the next three years.
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