Twitter Update
Every day, Elon Musk is working to overcome the millions of hurdles that are obstructing his official acquisition of Twitter. Something like this has never happened before, and this will go down as one of the most iconic deals in the history of the economy. So far, we’ve covered the whole funding aspect, which we’ll get a little further into later, but Musk was able to clear a political hurdle that many feared.
Twitter, being an international company, needs to comply with laws and regulations in every country that contains Twitter users. Recently, the European Union passed legislation calling for social media companies to swiftly contain illegal content or face major fines. The most known fact about Musk’s acquisition is that he wants to be more lenient with content moderation when it comes to suspensions and content removal, being a free speech activist. This leads to two conflicting opinions, but Musk was able to negotiate in Austin with an EU representative. Musk said that his preference is for Twitter to conform to local laws, which are decided by citizens, leading back to his idea that the users should run Twitter.
On the funding side, short-seller firm Hindenburg Research announced a short position on Twitter as they feel Musk’s offer is highly overvalued and it has inflated the stock price. Hindenburg stated that Twitter has been outpacing the NASDAQ by a grand margin ever since the Musk announcement, and they believe a withdrawal of Musk’s offer would cause a 50 percent drop in equity. Musk tweeted a clapback response to the report, but if this is the case then we could consider this deal done due to the dependency. With Musk’s confidence, however, it looks like this report means nothing.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
