In a transaction valued at $44 billion, Elon Musk has bought Twitter and he has promised to make it a private company. So, what does ‘Twitter Going Private’ actually mean for the users? Will the users still be able to use it for free? Here is everything you need to know about what does Twitter going private actually mean.
Users are baffled as to their favorite social media app, is now owned by one of the leading billionaires of the world. Elon Musk, whose net worth stands at $273 billion has just bough Twitter in a deal revealed on Monday (April 25th).
The deal is being confirmed by Twitter’s Board of Directors on 25th April 2022. Revealing more about the deal, the Board Of Directors of Twitter has said that Elon has acquired the platform for $54.20 per share.
Elon had put in a bid for acquiring Twitter earlier this month after he acquired a 9.2% stake in the company to become the majority shareholder of the company.
In one of his recent statements he revealed, “Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it”.
As the leading billionaire has now acquired the platform, he has revealed that Twitter is going private, but what does it actually mean for the users? Here is everything you need to know.
What Does It Mean For Twitter To Go Private?
In the official statement Twitter revealed the deal with Elon Musk saying, “upon completion of the transaction, Twitter will become a privately held company”.
The post further read, “Twitter, Inc. today announced that it has entered into a definitive agreement to be acquired by an entity wholly owned by Elon Musk, for $54.20 per share in cash in a transaction valued at approximately $44 billion”.
As the news of Twitter private has gone viral on social media, users are wondering what Twitter’s going private would may mean.
One curious user wrote, “Will this be the beginning and the end of Twitter? What does going private mean?”
Another said, “What does that even mean for Twitter to go private?”
“This is an extraordinary development in the world of social media. It will be interesting to see how a privately owned Twitter (run by a man who is an absolutist over free speech) will react to global moves to regulate” Tweeted another user.
Twitter Going Private
For now, Twitter is a public company but once Elon Musk takes over it, the bird app will no more be a public company.
You may not know but, Twitter initially started its journey as a private company. It was created in 2006 by ack Dorsey, Noah Glass, Biz Stone, and Evan Williams and it was initially based in San Francisco, California.
Later in 2013, the company announced to become a public company and it offered its shares to the general public. Since then, the company was not owned by any single individual but it was divided into shares owned by several people.
As now Elon Musk has acquired the company, he will be paying to every single shareholder to acquire all the shares from general public. Doing so will give him sole ownership of the social media platform and nobody else will be able to acquire shares anymore.
Being the only owner of the company, Elon will have more control over how Twitter will work. Talking about the future of the company, Elon said in one of his letters that the app would “go through the changes that need to be made”.
He also added that, he wants to “defeat the spam bots” and “authenticate all humans” before saying that “free speech is the bedrock of a functioning democracy”.
You may also want to read about Twitter Blue
The Bottom Line
This was all about what does going private of Twitter mean to its users. Hopefully, we are able to provide all the information you needed to know.