The battle between world’s richest man Elon Musk and social media giant Twitter, has almost come to an end. As a result, Elon Musk, as a brand, has taken a hit due to the complete scenario. Not only this, but the bankers and lawyers who sided with Musk on the issue are also going to face the backlash due to the same.
Popular Tech analyst at Wedbush, Dan Ives, said that the deal could be dubbed as a poor trade for Elon, as well as the investors who were into it with him to acquire the micro-blogging platform for $44 billion.
Talking about Twitter as an organization. It is a winning situation as the offer is still on the table. Nevertheless, the employees of the organization are unable to figure out the strategies for the future of Twitter because they don’t know who is going to have ownership at the end and what changes in the work they are supposed to implement. Here’s a timeline from the start of the controversy and the expected outcome.
Elon Musk Twitter deal controversy
Where did it start?
It all started when Elon Musk showed interest in buying Twitter completely a few months ago. However, after a while, citing reasons like Twitter is using bots and the majority of people on the platform are fake, Musk refrained from buying Twitter which came as a shocker for the organization.
One thing to mention here is that as soon as Musk backed off, the share price of Twitter fell by 26%, and just after that when he again said that he would buy the firm, the share price skyrocketed by 22%. Now, data analysts have to say that Elon Musk is going to overpay for the shares of the platform, considering that the main rivals of Twitter like Snap and Meta’s shares are available at half price.
Impact on Twitter employees
When it comes to Twitter employees, it can be said that they have been in a miserable state since the time the deal was announced. A professor from North Western University’s Kellogg School Management said that the employees of the organization are not able to invest the apt amount of time in work as they are confused regarding the ownership, due to which they cannot work on a single plan.
In the last few months, multiple employees have resigned from the company, which belonged to both Senior and entry-level cadres. Meanwhile, Twitter has also paused hiring for the time being. It is also in the air that Musk, after buying the company, will be aggressively looking after the cost-cutting.
Impact on shareholders, Parag Agarwal, and the lawyers
In the whole feud, Twitter CEO Parag Agarwal, along with the shareholders and the lawyers, are on the advantageous side. Starting with the CEO, Parag Agarwal emerged as a highly professional individual throughout the whole scenario and kept his calm until the end. The best part about him in the whole scenario is that he didn’t bow down in front of Elon Musk. However, there are high chances that he will lose the role of CEO if Elon buys Twitter.
On the other hand, Twitter shareholders benefitted from the whole deal as the dip, and high prices helped them make some decent money. A report by The Wall Street Journal suggested that billionaire Carl Icahn invested around $500 million in Twitter in the past few months and has at least made a profit of around $250 million.
Last but not least, the lawyers from both sides made decent money due to this feud. Collectively, Elon Musk and Twitter hired around 50 lawyers from top law firms to take the battle to court. Experts said in a report that Musk could end up spending around $200 million in terms of legal costs. So this thing can be said to be the major pointer of the Elon Musk Twitter deal controversy.
What will change if Elon Musk buys Twitter?
First things first, the moderation strategies of Twitter will be tossed into the bin. Musk has openly voiced his support of free speech, and we can expect that some of the most popular banned accounts, like that of former president Donald Trump, will be restored.
In addition, we can also get to see some significant algorithm changes. Musk is also determined to remove all the spam bots from the platform. A major highlight of the whole scene is that Musk will use Twitter as a medium to launch X, his everything application. He even bought the X.com domain name and has been teasing since then.
