Republicans Rally Behind Musk’s $44B Deal to Buy Twitter
Elon Musk will buy Twitter for $44 billion and take it private (see 2204210038), the company announced Monday to Republican cheers and Democratic concerns. Unanimously approved by Twitter’s board, the deal is expected to close this year, the company said. Stockholders will receive $54.20 cash for each share of Twitter common stock, a 38% premium to Twitter's closing stock price April 1, the company said. Musk disclosed his 9% stake in Twitter on March 31. Stock dropped 5.66% Monday, closing at $51.70.
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"Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated," Musk said in a statement. He announced plans for open source algorithms, removing spam bots and authenticating “all humans”: Twitter has “tremendous potential -- I look forward to working with the company and the community of users to unlock it."
The board did a “thoughtful and comprehensive process to assess Elon's proposal with a deliberate focus on value, certainty, and financing,” said independent board chair Bret Taylor. “The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter's stockholders."
Twitter “has a purpose and relevance that impacts the entire world,” said CEO Parag Agrawal. “Deeply proud of our teams and inspired by the work that has never been more important."
Twitter openly “censors speech based on political ideologies and makes a mockery of our Constitutional liberties,” tweeted Sen. Ted Cruz, R-Texas: If Musk “can turn that around to actually protect free speech and encourage open discourse, Twitter’s full potential will be unlocked.” FCC Commissioner Brendan Carr said he hopes the platform moves toward free speech and away from political censorship: But “we can and must do more than hope. We should enact common sense, pro-speech reforms that prevent discrimination against core, protected speech.”
Sen. Marsha Blackburn, R-Tenn., called it an “encouraging day for freedom of speech. I am hopeful that Elon Musk will help rein in Big Tech’s history of censoring users that have a different viewpoint.” Musk tweeted: “I hope that even my worst critics remain on Twitter, because that is what free speech means.”
The American Civil Liberties Union said it's dangerous having so much power in one person’s hands but noted that Musk is an ACLU member and one of the organization’s “most significant supporters.” Twitter and other tech platforms “play a profound and unique role in enabling our right to express ourselves online,” said ACLU Executive Director Anthony Romero. “We should be worried about any powerful central actor, whether it’s a government or any wealthy individual -- even if it’s an ACLU member -- having so much control over the boundaries of our political speech online.”
Free Press called the Musk takeover a “huge step backward” for Twitter. Musk “hasn’t shown he has the capacity to be accountable to this diverse online community,” said co-CEO Jessica Gonzalez. “Protecting everyone’s ability to participate and speak on online platforms requires careful moderation. Musk taking the company private will likely threaten this notion and make the platform even more toxic to its users and the public.”