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Elon Musk bought Twitter and shakes the market once again: What will happen to the social network?

Twitter is now from Elon Musk. Although have refused to the first offer of the founder of Tesla on April 15, the Twitter directory ad finally that the social network will pass into the hands of Musk as the sole owner. The offer of the South African businessman, nationalized Canadian and American, was for US$44,000 million, that is, he will pay US$54.20 per share to each member of the board of directors.

After a whole morning of speculation about it, the sale was approved unanimously by the board of directors of Twitter and is expected to be completed this year after a green light from shareholders, regulators and other customary conditions.

Brett Taylorindependent chairman of the board of Twitteraccording to EFE Agencyexplained that they evaluated Musk’s proposal by focusing on “value, certainty and financing”considering it beneficial for shareholders.

As expressed by Muskand compiled by the EFE AgencyFor him, freedom of expression is essential to guarantee functional democracy and Twitter it is a digital space where people and peoples discuss and debate vital issues for the future of humanity.

He also emphasized his desire to improve the social network by enhancing the product with new features, making the algorithms open source in order to increase user confidence and counter spam bots.

For Miguel Ugaz, founding partner of Mu Marketing & Content Lab, the situation raises certain concerns about whether or not algorithms will be altered or certain content will be prioritized over others. “We would have to see where Musk takes him. I’m a little concerned about egotistical profiles [como los de Elon Musk] believing that they save the world by taking over a vehicle of expression as powerful as Twitter”commented.

Erick Iriarte, main partner and chief of Information Technology Law Area, considered it important to be attentive to see where Musk will take the issues of transparency in the management and control of the social network, as well as what will be the moral guidelines that they could incorporate and discover how they could affect freedom of expression.


Twitter Stock Movement

During the trading session on Monday, Twitter opened its listing on the stock market with a value of US$ 51.02. After speculation about the sale of the social network, and its subsequent confirmation, the shares peaked at US$52.09 per share. At the close of the day, it presented an advance of 5.66%, valuing at US$ 51.70.

The future of Twitter

For Ricardo Chadwick, partner & executive creative director of Fahrenheit DDB Peru, in principle this purchase should not affect Twitterbecause the content is provided by users. “However, as we know, Twitter He has taken a stand against people who misinform, even blocking accounts. These decisions have been made by a more liberal leadership. But with Elon Musk at the head, those decisions could change “commented.

For Ugaz there are two scenarios. As for the worst, she said, there is the one in which Musk begins to influence the content that appears or is prioritized. While the positive scenario would be that Twitter maintain care in the curation of privacy and content issues, even censoring characters like Donald Trump. “I would expect certain ethical governance guidelines to be maintained and reinforced”commented the founder of Mu Marketing & Content Lab.

In addition, there is on the table the express desire to Musk to take out Twitter of the New York Stock Exchange. An unlisted company is one that does not participate in any stock market in such a way that its shares cannot be traded on the Stock Exchange.

According to Erick Iriarte, converting Twitter in a non-listed company it means eliminating the possibility that anyone can acquire shares; “But it also removes the information obligations that must be delivered to government entities and, with this, can affect the company’s transparency”Held.

While the actions of Twitter took off after the news and closed positive, those of Tesla registered a decline of 0.70% at the close of the New York Stock Exchange. According to Luis Eduardo Falen, Head of Macroeconomic & Strategy Research at Inteligo, “Tesla’s decline could be explained by market speculation because, to collect part of the offer, Musk would have to sell a portion of his Tesla shares.”he explained.


The pre-sale

On April 15, Elon Musk, founder of Tesla, announced his desire to buy the social network Twitter by putting on the table the purchase option of US$54.20 per share. Musk’s proposal valued the company at $43.39 billion. The tycoon already had a 9.2% stake in the social platform, which represents US$2.9 billion.

The offer was launched three days after Musk refused to join Twitter’s board. According to a letter from Musk addressed to Bret Taylor, president of the social network, the businessman would have invested because he believed in the potential of the platform and the freedom of expression that it demonstrated. However, once the investment was made, he would have realized that it was “imperative” to transform it into a private, unlisted company.

Source: Elcomercio

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