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Elon Musk is Buying Twitter. Is That a Big Deal?


According to Time.com, Elon Musk has raised about $7.1 for the Twitter takeover of a total $44 billion. The commitment comes as billionaire leader Tesla Inc. to finance one of the technology industry's largest acquisitions to date. The investors named in the filing include Binance, Brookfield, Fidelity Management & Research, Lawrence J. Ellison Revocable Trust and Qatar Holding.

Twitter serves both useful and useless purposes. On the useful side, this site is an excellent news and research aggregator. Twitter is much more useful than cable news for understanding real-time events. Twitter is also useful in figuring out which stories grab attention among the media elite and which fade in less than a day. Both of these can be found on Twitter's trending feature using hashtags.

On the other hand, Twitter has a useless side like an online debate or disagreement over a viraltweet. This freedom of speech has become a boomerang for Twitter users.

To date, Twitter shares are up 2.3% in pre-market trading. Musk also discussed with Jack Dorsey who is known as the founder of Twitter about the contribution of some of his shares to the acquisition. The company also said that previously announced margin lending committed to the deal was reduced to an aggregate principal amount of $6.25 billion from $12.5 billion.

Musk's move, revealed in a regulatory filing, comes after his tweet that he was giving "serious thought" to building a new social media platform, while questioning Twitter's commitment to free speech. He also started a poll asking Twitter users if they wanted an edit button, a long-awaited feature on which the social media platform has worked. In less than three hours after the poll started, more than 1.2 million users voted, with more than 75 percent of them supporting the edit option.

The world's richest man reached a deal on April 25 to acquire Twitter using a financing plan that worried some Tesla investors. In addition to pledging tens of billions of dollars of his Tesla stock to support margin lending, Musk has pledged to set up about $21 billion worth of equity. It's unclear how much will come from selling a portion of its Tesla stake. Musk has sold more than $8.5 billion of Tesla shares to finance the deal.

Sources: Time.com, TheJakartaPost.com, TheWashingtonPost.com


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