STORY: Elon Musk clinched a deal to buy Twitter for $44 billion on Monday in a transaction that will shift control of the social media platform populated by millions of users and global leaders to the world's richest person.
The company had adopted a so-called poison pill to resist Musk’s takeover efforts, but changed course after Musk unveiled a financing package, which includes $33.5 billion from his own fortune.
Daniel Ives is managing director at Wedbush Securities.
"I think there were two issues that really changed the board's mind to do a U-turn on the Musk bid. One was the financing. Once Musk got line to financing, that really was the clock striking twelve for the board. It put their feet to the fire. And, second, was no other bidder coming. Once another bidder did not come, they were at the altar but no one came. That's why they ultimately called back Musk."
Musk – an active Twitter user with more than 83 million followers – has said Twitter needs to be taken private to grow and become a genuine platform for free speech.
"I think Musk likely becomes chairman, not CEO. Takes historical social media experienced people that come into Twitter. Make it a subscription model, probably a paid subscription model, increase cash flow. There will clearly be changes from a constriction and what people can say. And that's going to be a tight wire act, especially in this environment. But, ultimately, taking private is going to have a lot of changes for Twitter. But Musk just bet 20% of his net worth on Twitter. It's not just about freedom of speech."
Many Republicans welcomed news of the sale and called on Musk to return former President Donald Trump to the social media platform.
Shares of Twitter jumped as high as 6.45% on Monday to above $52, still below Musk's offer of $54.20 per share.