Why Elon Musk Wants Twitter

 

Why Elon Musk Wants Twitter 

See, whether it's revenue or its's number of users. Twitter is not the world's largest social media platform. If we compare it with other platforms. 

Then what is the reason that the world's richest person, Elon Musk. Got so interested in this social media platform. That he is even ready to sell his Tesla stocks to buy this platform. 

And the bigger question is, despite such profit. Whether it's the board of Twitter. Or the US Govt or the Prince of UAE. Why are they stopping Elon from buying Twitter?

 So what is the actual reason behind all of this? Let's discuss that. For Elon, Twitter is not just a Social Media platform. 

It's a marketing tool. Where he can promote his different products in various ways. Now you will ask why Twitter, 

why not any other Social Media platform?

Why Elon Musk Wants Twitter 

Because he's active on this platform, and he has more than 80M followers. Whenever he launches a new product, retweet. 

Likes and comments. Results in an engagement of more than 500 to 600M. Most countries don't even have that much population. And Elon always makes the most out of it. And that's the reason Elon keeps on posting something interesting on Twitter. 

And don't let it be dull like other billionaires. And this is one advantage and the other major advantage is. 

The US market is fluctuated by Elon's tweet. And it fluctuates so much that now it's a rule. That he has to take permission from SEC before tweeting. 

From which he's trying to get rid of for a very long time. See, when the world's richest person associates with a product or company. 

Then people start thinking that the particular product or entity will perform better. And people predict from Elon's tweet where he'll invest next. And that's the reason people get excited from a single tweet of his. 

Especially the immature investors get more excited. Like in Doge coin's case. He just tweeted that he's working with dogecoin. 

On its transaction efficiency and after this tweet price of Dogecoin rose 14%. After some time he gave a statement. 

That it's a hustle and after that Dogecoin dropped by 35%. The same thing happened in the case of Bitcoin, Elon tweeted. 

That Tesla will use Bitcoins. So, the Bitcoin rises very high. And after that Elon Twitted that, it's an issue of the environment. So Bitcoin might not be used. After that Bitcoin's price dropped by 10%. Similarly, he Twitted in 2018. That he'll privatize Tesla. 

Tesla's price kept increasing, but he didn't privatize it. Which affected the market. See, if you can influence the market, then that's a big advantage. 

If you can invest and withdraw at the right time. You can make a huge profit. So, why am I telling you all of this now? And how is it related to the Twitter deal? 

See, the pattern is visible this time as well. On 14th March, Elon bought 9.2% shares of Twitter for $3B. Which made him the highest shareholder of Twitter. Although, Vanguard surpassed him later on. 

Vanguard became 10.3% shareholder. But more importantly, even after buying the shares on 14th March. Elon nowhere disclosed that he bought the shares of Twitter. 

Just like SEBI in India, there is SEC in the US. Securities and Exchange Commission. That regulates the share market. When someone buys more than 5% of the share. 

Then it needs to be disclosed within 10 days. Failing to which. A fine of $1Lakh is imposed according to the rules. Which Elon has already been fined for. But, even then he didn't disclose that he bought shares of Twitter. 

Within 10 days. It was certain that he has to fined. Now that I know this fact, Elon must know. But, anyways he did it, so what's the reason behind it? 

See, the fine of $1 lakh dollars is 0.00003% of his net worth. If we approximately estimate $3B. Fine may be of $1 lakh but Elon made $700M in a single day. 

So, how he earned it, I'll explain. Elon brought the shares of Twitter on the 24th of march and tweeted.

Why Elon Musk Wants Twitter 

On 25th march that whether or not Twitter should have freedom of speech. And added to do the poll carefully as the consequences of it is going to be important. 

So people started speculating. And this was the first hint on 25th march. And people slowly started investing in the shares of Twitter. 

People thought that Elon may get associated with Twitter. Now you may say that he could have said it directly, or given a clearer hint. 

But according to SEC's rule. Elon Musk is the first person to require prior approval for tweeting. Otherwise, he can't tweet. Because his tweets influence the market. That's why he showed his interest in Twitter indirectly. 

Elon tweeted on the same subject again on 26th March. Slowly did more polls like whether there should be an edit button on Twitter. 

See, his followers understand when such a chain of tweets comes. That something is going to happen. People speculate that some sort of association with Twitter may happen. 

Twitter rose around 29.64% in a single day. If you calculate according to $3B. 

Then it's more than $700M profit in one day just by tweeting. Even if he is imposed a fine of $1M by SEC,

Why Elon Musk Wants Twitter 

 Comparatively he earned way more than that. Elon doesn't want to lose this power. And if Twitter can ban Donald Trump then it can ban anyone. 

But after buying a 9.2% share Elon secured himself. Even though Elon is the richest person in the world, all the money is in the form of shares. 

17% of his shares are in Tesla. SpaceX is still private. So arranging such huge money to buy Twitter is not an easy task. He may have to sell his Tesla shares. 

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So create your US stock account and, get tesla shares worth up to Rs.800 free. So coming back to the topic, as I was saying, Elon is the richest person in the world. 

He has such a strong influence then why doesn't he create his platform. But it's not that easy. Elon has tried it before like he had launched Signal similar to WhatsApp. 

But that was not a great hit and we all saw that when Trump was banned. He also came up with a new app called Truth. 

Despite having such influence it was not a success. From, all of these he got to know that. It's not easy to bring a new platform. 

To beat companies like Twitter and Facebook plus it's time-consuming. However, Elon is stating that he wants to give a platform. 

Free speech to the world by buying Twitter. Where anyone can put their opinion. Now, people against Elon are saying that. He wants to secure his speech rather than the world over Twitter. And he only talks about freedom of speech. 

When money is involved. When Ukraine was provided with internet via satellite. Then he was asked if he'll give internet to Russia. 

To which he replied, he supports freedom of speech so. I'll give internet to Russia as well. Elon supports freedom of speech. 

But there are many such users on Twitter. Who criticizes Tesla's products, Elon himself blocked those accounts. 

A former Tesla employee stated the shortcomings of Tesla cars. So Elon fired him. There was a famous blogger who used to write articles against Tesla. Even he was threatened and then he also stopped writing against Tesla afterward. 

The way Elon was openly discussing the changes in Tesla. He somewhere thought that he could run Tesla according to him, with his 9.2% shares. 

But this didn't happen. And he soon realized that if he has to run Twitter according to him. Then he has to completely take over Twitter. 

That's the reason why Twitter invited Elon to join the board which is a very normal process. Whenever someone buys a major share, the company invites them to the board. However, Elon refused to accept the seat which was very shocking for everyone. But later it was revealed that Elon wanted to completely take over Twitter. 

And if he would have joined the board He could have only bought 15% of the shares. The board of Twitter did not want Elon to completely take over Twitter. 

No matter how much loss they face. Because they did not know the reason behind Elon mocking Twitter. 

First, he said that there is no freedom of speech on Twitter, and he would change it. 

Then he also said that the Twitter headquarters in San Francisco would be converted into a homeless shelter. As no one is ever seen there. Then posted a picture that the next board meeting, would be conducted in this fashion. Also conducted several polls regarding the change of the edit button. 

He troubled the entire Twitter board within 2-3 days. And everyone was confused about this that. If you're going to make a deal with someone. 

Then why would you mock them in this way. Elon wrote a letter to the Twitter board in which he foremost mentioned, that he doesn't want to become a part of the board. 

Secondly, he made an offer that Despite the current price of the shares. Ranging between $40 - $45. He is ready to buy all the shares at the rate of $54. And turn Twitter into a private company. So that he could implement freedom of speech and if they don't accept. 

He indirectly threatened. That, all the shares that he has of Twitter. Could be reconsidered or even sold, by him. As soon as he sent this letter. 

A prince of Saudi said that he wouldn't let Elon buy Twitter. No matter what happens. Elon highlighted this specific point even more. 

By stating how could freedom of speech prevail. When owner of Saudi is involved. How much they themselves respect freedom of speech. Many reports also said that, the US government does not want Elon to buy Twitter. 

Because he would restore the account of Trump. And those against the ideologies of the ruling party. Such as the matter of Ukraine. 

Or any other policy opposing accounts. Would bring them back. Twitter has been continuously accused. Of being partial towards the left-wing. 

Twitter does not act strictly when leftists do something. The former CEO of Twitter. Has accepted this on record. Even though the board deny it, but there is one way. For Elon to slowly buy 50% of the shares. 

And become the owner of twitter. But there is one problem in that, as the shares are sold. Their demand increases and the prices go up. 

By doing so, the cost of Twitter would be very high for Elon to buy it. On top of that, the Twitter board also made it difficult for Elon, By introducing the poison pill on 15th April. 

Now, what is a poison pill? It is a self-defense technique that companies adopt. To avoid such takeovers. In this, what happens is, that suppose there are 1000 shares of a company in the market, so they increase those shares to 5000. 

So if anyone wants to take over. It becomes more difficult for them. And the price of shares increases even more. 

It's more difficult to buy a company from 100 people rather than to buy from 10 people. Ever since Elon is being stopped from buying Twitter, he's frequently conducting poles. 

That the board is letting the investors bear the loss, for their profit. Shareholders are getting good prices which will benefit them. And the future of Twitter should be decided by the shareholders. And not just by the board members. In that, the case the shareholders can approach the court. 

That the board is not taking decisions in their favor. The shareholders are getting good profit till now. 

But if Elon dissolves all the shares later on. Then the shareholders have to bear the heavy loss. 

At the same time, Elon is suggesting, that there should voting amongst the shareholders. And whatever they decide should be done. 

Elon recently stated in the TED conference '22 held in Vancouver. That he also has a plan B. However, he didn't disclose it. But he'll do something big in the coming times. 

This Is Why Elon Musk Wants Twitter Hope You are Understand.