Elon Musk has taken over Twitter and fired its CEO and other top executives. Trading in company shares was suspended Friday on the New York Stock Exchange and the stock will be officially delisted early next month, according to a filing with securities regulators. So now what?
WHY DID MUSK BUY TWITTER?
One reason why Musk bought Twitter this week is because he had little choice. The world’s richest man spent months trying to back out of the $44 billion purchase agreement he originally signed in April. But the uncertainty was so disruptive to Twitter’s business that it sued him in the Delaware Court of Chancery to force the deal’s completion, and a judge gave a Friday deadline to complete the deal or face a November trial that Musk was likely to lose.
As for why Musk wanted to own Twitter in the first place, the reasons are more complicated. “There has been much speculation about why I bought Twitter and what I think about advertising,” he said in an open letter Thursday to companies that sell ads on Twitter, which is how the company makes money. “Most of it has been wrong.”
HOW DID MUSK BUY TWITTER?
It’s not yet clear how Musk secured all of the financing to close his $44 billion agreement to buy the company and take it private. But many of the commitments to the Tesla CEO were pledged back in the spring.