What is Elon Musk looking for with the purchase of Twitter | International

Elon Muskone the richest person in the world, became this Monday the largest shareholder of Twitter, the company behind the eponymous social messaging network, after acquiring 9.2% of the company in an operation that prompted a close of green numbers on Wall Street.

(Elon Musk became the majority shareholder of Twitter.)

Twitter’s price on the New York Stock Exchange closed this Monday with a rise of 27.12% to US $ 49.97. Specificthe South African acquired 73.5 million common shares of Twitter worth US$2.9 billion at closing price last Friday, April 1.

In this way, Musk’s involvement in the technology company (9.2%) exceeds that of the Vanguard investment fund (8.8%) and the Morgan Stanley bank (8.4%), two of the largest shareholders behind the company and also that of Jack Dorsey (2.25%)according to The Washington Post, who left the company last November, naming Parag Agrawal as the new CEO.

AN OLD KNOWLEDGE

The reality is that Elon Musk is “an old acquaintance” within the social network. With an active profile, the tycoon frequently records his opinions regarding freedom of expression within said network, bitcoin or some other current issue.
Musk conducted a Twitter poll on March 25 in which he asked: “Freedom of expression is essential to the functioning of democracy. Do you think Twitter strictly adheres to that principle? “No”, responded more than 70% of the two million users who voted.

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“Given that Twitter serves as a de facto public square, not adhering to fundamental principles undermines democracy. What should be done?” he asked the other day. “Is a new platform needed?” he asked and “buy Twitter” fIt was one of the first responses received.

Raúl Ávila, a business expert, told Portfolio that “The power of media and information is key to the future of sustainability and markets”this being the reason behind the purchase.

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“That is why Musk takes a bet on this purchase where in the medium term the media are being concentrated as tools of power”pointed out the expert.

For Pablo Márquez, a professor at the Javeriana University and an expert in technology, “With the departure of the creator of Twitter and in the face of the company’s poor financial situation, Musk’s entry undoubtedly signals at least two effects on the company in the short term.”

First, says Márquez, the arrival of an eventual lead investor who “It will give a new dynamic to the company”although it must go through the filter of the business authorities.

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And, on the other hand, “Because of his position regarding content moderation, he will probably have a lot to say as a shareholder about the effects of Twitter’s policies in that scenario.”

ROBERTO CASAS LUGO
AFP

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