Elon Musk bought Twitter this week and the internet has been on fire over it. The volume of information (and disinformation) circulating on the topic is overwhelming and people have questions.
Musk paid $44 billion for the social media platform. As reported by the New York Times, “Mr. Musk is paying with $13 billion in bank loans, plus another $12.5 billion in loans against his stock in Tesla. He has pledged another $21 billion in cash, though he has not outlined the source of that money.”
Tesla shareholders are worried because the world’s richest man convinced banks to lend most funds to cover the cost. Musk sold $4 billion in Tesla shares since securing the Twitter deal. Billions more in shares were sold weeks before the merger was announced.
According to a securities filing, if the deal flops, the SpaceX pioneer will be bound to Twitter paying a break-up fee of $1 billion. Yet people are speculating Musk may already have plans of bailing on the deal.
Despite speculation, Musk says he has a vision for Twitter. He told the lenders about “new ways to make money out of tweets that contain important information or go viral.”
The deal is expected to be finalized before the end of 2022. So there is still time to find out how the philanthropist who provided internet to Ukraine almost two months ago plans on changing the social media platform and social media as we know it.
One question remains, no reports have been able to confirm or deny the answer. Will Donald Trump have his Twitter reactivated? Trump probably isn’t worried since the launch of Truth Social earlier this year. Former social media conglomerate Marc Zuckerberg of Meta (formerly Facebook) has yet to comment on the break-up of his social media monopoly.