Only weeks after Elon Musk bought a stake in Twitter Inc (NYSE: TWTR), the billionaire took over the company with $44 billion. Musk first purchased Kellogg Company (NYSE: K) for $25 billion and then used the financing to purchase Twitter.
Despite Musk having no plan on how to make profits from Twitter, there was no major hesitation from prominent banks to lend him money for the move. However, Musk had to use some stock from his company Tesla Inc (NASDAQ: TSLA, to make the deal possible. The banks didn’t seem bothered by Musk saying he doesn’t care about Twitter’s economics as lending him money gives them access to his businesses.
Shortly after Musk bought Twitter, he stated that he wanted his critics to keep using the platform as it symbolised free speech. However, these critics doubt that Musk can fix the issues of harassment, racism, and misinformation on Twitter.
Donald Trump won’t rejoin Twitter
With Musk now in charge of the company, many wonder if the former U.S President Donald Trump. Trump said he wouldn’t rejoin Twitter even if the billionaire reinstated him. He instead plans to use his platform, Truth Social.
After Musk bought Twitter, he stated that he wanted to take the company private to minimise its policing. However, a judge has ruled that this was a lie. Tesla investors are suing Elon as the go-private tweet made them incur losses.
Since the court ruled that Musk was a liar, people believe it would be harder for him to leave the arrangement with the SEC that a Tesla official has to approve his statements on the company before he posts them.
Henrik Fisker deletes his Twitter account
Many prominent figures have expressed concern after Musk acquired Twitter. One of them is Henrik Fisker, who deleted his account shortly after the acquisition news. Fisker, who owns Fisker Inc (NYSE: FSR), an electric vehicle company, states that he believes in free speech. However, he doesn’t want a competitor managing his free speech.
Fisker originally owned Fisker Automotive Inc, which was Tesla’s biggest competitor. The cow et bankrupt, and years late, Fisker started his latest business.