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Elon Musk Offers to Buy Out Twitter, Dogecoin to Cut its Losses

Elon Musk Offers to Buy Out Twitter, Dogecoin to Cut its Losses

In a seemingly non-threatening and casual poll by Dogecoin (DOGE) proponent Elon Musk that discussed whether Twitter adheres to free speech principles or not, the top shareholders and the CEO couldn’t have possibly fathomed the subsequent turn of events. Musk became the largest shareholder of Twitter by purchasing 9.2% of Twitter’s stocks (TWTR). However, he then rejected the offer of joining the board post the discussions with the firm’s directors. Musk has offered to buy 100% of Twitter shares to boost product innovation as per the latest spin. 

Thinking how did Dogecoin get in the way? Twitter offers a subscription service called Twitter Blue, allowing users to edit tweets within 20 seconds of tweeting. Recently, Elon Musk, the CEO of Tesla, suggested DOGE be one of the payment options for Twitter blue, which eventually led to an 8% gain in the digital asset. Moreover, Musk taking over the majority of Twitter shares seem like encouragement to crypto investors as the former has been vocal about the rampant crypto scams. 

Musk threats to buy 100% of Twitter’s shares

However, it wasn’t apparent that Elon Musk would never be a passive shareholder in Twitter. He has said that he is ready to buy out Twitter for $43 billion. This bid represents a premium of 18.2% to the Twitter closing price on Wednesday and a 38% premium to what it was traded for before Musk let out his 9.1% ownership stake in early April. Musk also says that his buyout price of Twitter is a whopping 54% premium to what he paid. Musk also contemplates that he intends to take Twitter private, saying that the company has “extraordinary potential. I will unlock it.”

Musk wants to reconsider his position as Twitter’s shareholder

The billionaire clarified that this is a take-it-or-leave-it buyout offer, saying in the filing that “I am not playing the back-and-forth game. I have moved straight to the end. It’s a high price, and your shareholders will love it.” He further said, “If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder.”

As Twitter’s largest market shareholder, Musk has threatened the team to take it seriously, given his history of unthought-of behaviour. 

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