The news: Elon Musk is considering launching a tender offer for Twitter, per a new securities filing. Musk has obtained promises for $46.5 billion to help finance the possible transaction, according to Thursday’s filing.
More on this: According to the filing, Musk has collected $46.5 billion in commitments to help finance the proposed deal.
How we got here: Musk was set to take a seat on Twitter’s board of directors, but backed out at the last second.
Poorly-timed distraction: “There will be distractions ahead, but our goals and priorities remain unchanged," tweeted Twitter chief Parag Agrawal just 11 days ago when Musk backed out of joining the board. The statement was spot-on; Musk’s financial maneuvers are undoubtedly taking leadership’s focus away from the product.
While rank-and-file employees still have their marching orders, uncertainty regarding the platform’s future could delay innovations that it is looking to launch or expand upon. These include:
Shops is a particularly noteworthy initiative of Twitter’s, considering social media shoppers don’t associate the platform with making purchases as much as they do TikTok, YouTube, and other platforms. Solving for that could take pressure off of Twitter’s ad business.
What’s next: Twitter’s board stated that it’s dedicated to completing a “careful, comprehensive, and deliberate review” to determine the course of action that is in the best interest of Twitter and its investors.
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