CBA Newsletter -May (draft1) (6) (1)

Elon Musk strikes deal to buy Twitter by Summer Woon Twitter's board has accepted a roughly USD 44 billion offer to sell the company to Elon Musk, resulting in the world's richest man seizing control of the influential social media platform. Now, let us dive into Twitter's changes expected and financing of Twitter purchase. The Current Business Affairs Newsletter (May Issue) of The Business Students' Union, HKUSTSU is taking you on the journey of the Twitter. Changes Expected for Twitter from the users and stockholders of Twitter, as over freedom of speech on Twitter will result in the Ever since the acquisition of Twitter, Tesla CEO spread of hate speech, disinformation and Elon Musk has desired to change Twitter stance, misinformation in tweets. especially in general politics. He also wants to make Twitter better than ever by improving Twitter Besides, Musk might fight cryptocurrency frauds as with new elements, making the algorithms open- this problem has been a thorn on Twitter's side, and source to increase trust and conquer the spambots. they're concerns that have personally impacted Musk as a bitcoin scam hacked him in 2020. Firstly, Musk would want to alter the content Moreover, Musk might also insert an edit button on moderation of Twitter. He always believed that Twitter to revise users' tweets for typos and other failing to adhere to free speech principles problems. fundamentally disabled democracy and questioned Twitter for censoring some controversial voices. One of the issues complained about by users is that Therefore, he might influence the resurfacing of Twitter's algorithms govern their lives, attracting tweets once considered controversial, thus them to spend more time on Twitter, Facebook and unlocking Twitter's possibility of being the other platforms. Thus, Musk has suggested Twitter platform for free speech worldwide by constructing could make the algorithm open-source. Musk didn't Twitter's own rules about what is permitted. define what that would entail, but the open-source However, this change might raise some concerns software will be freely available and can be varied.

Financing of The Purchase Musk then tapped his affluent, longtime friends. The pitch from Musk was straightforward, which was to Even though the purchase of Twitter sounds like a convince them that he had made them billions, and positive futuristic impact for the company, there is they could repay for that by backing his latest some significant laidback in the present. Elon Musk venture. Such as fund manager Ron Baron from had previously sold many of his Tesla shares to Baron Capital Management, who has made more finance his buyout. This action has harmed Tesla's than USD 7 billion since first investing in Tesla in stock price, which causes stockholders to lose a vast 2014, is planning to repay by investing USD 100 sum. Besides using Elon Musk's stock funding, he million in Musk’s Twitter deal. has also discovered several financing opportunities from his business partners. Your Feedback Foremost, Musk attempted to tap sizeable private Your feedback will help a lot to improve our CBA equity investors. After several discussions with Newsletter, if you have any enquiries or suggestions, buyout titans, the significant players mostly have please do not hesitate to contact The Executive passed to finance this purchase. Besides, Musk was Committee of the Union through email by also working to bring in other equity investors, [email protected] or by mail to Mailbox #15, LG5 including billionaire Twitter co-founder Jack Dorsey, Student Amenities, The Hong Kong University of by offering existing shareholders an option to Science and Technology, Clear Water Bay, contribute their stakes to the buyout. Similarly, he Kowloon, HK. also added a new choice in which any further contributions might replace amounts of the financing Sources:https://www.ft.com/content/592900af-d963-450d-b8e5-1404e271f853 commitments previously arranged.