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SOLD!!! Elon Musk’s Twitter: What is NEXT for this platform.

Twitter’s Board of Directors officially accepted Elon Musk’s offer of $54.20 per share in cash, valuing the company at around $44 billion. The deal would allow Musk to take the 16-year-old social media platform private and implement a wide range of changes to the struggling tech firm.

There are still many hurdles to overcome for the transaction to be completed. It will be difficult to ascertain how long the regulatory process will take, while experts expect that it will likely be a few weeks before the stock is delisted on the New York Stock Exchange.

Looking ahead, investors, market analysts, and users have plenty of questions regarding the future of the “de facto public town square.”

Who Will Lead Twitter 2.0?

Will Musk keep Parag Agrawal as CEO, or will he appoint a new CEO? What about the Board of Directors?

Musk has been highly critical of Agrawal since being chosen to succeed co-founder Jack Dorsey. In December, he shared a meme that compared Agrawal taking the reins from Dorsey and Josef Stalin’s censors removing Soviet secret police official Nikolai Yezhov from photographic records.

Agrawal, who could receive $42 million if he is terminated from his position, was short in his remarks following the deal announcement.

“We expect Musk to face some scrutiny in the media and from regulators regarding his plans to significantly ease content moderation on the platform,” wrote Ali Mogharabi, a senior equity analyst at Morningstar, in a research note. While the deal is likely to go through, the market may be pricing in such a risk, as the stock is trading around 5 percent below the announced acquisition price.”

Indeed, there could be a lot at stake, be it digital advertising or subscriptions.

Musk has made it clear he wants to overhaul Twitter Blue by cutting the price, removing ads for subscribers, and allowing users to pay with Dogecoin.

After years of stagnation and a lack of product innovation, some say it is unclear if conditions will improve or worsen under Musk. Evercore ISI analyst Mark Mahaney warned of a potential advertiser exodus, projecting that users might not be interested in easing content moderation and subscription offerings.

“Elon is the singular solution I trust.”

“Twitter as a company has always been my sole issue and my biggest regret. It has been owned by Wall Street and the ad model. Taking it back from Wall Street is the correct first step,” the ex-CEO said, likely referring to the continuing pressure on public companies from Wall Street to maximize short-term earnings.

Musk ostensibly believes Twitter has a lot of potential, notes MoffettNathanson analyst Michael Nathanson in a report.

“We did not believe another bidder was out there and that Elon Musk’s offer was a steal of a deal for shareholders given the operating, monetization, and valuation challenges at the company,” he said. “Twitter’s sale for $54.20 is final evidence that the idea of Twitter has been far more valuable than the actual long-run operations of Twitter!”

Twitter is scheduled to deliver its first-quarter 2022 results on Thursday. The tech giant forecasts total revenues between $1.17 billion and $1.27 billion.

The Zacks Consensus Estimate suggests Twitter revenues will come in at $1.21 billion, representing a 17.01 percent gain from the same quarter a year ago.

Twitter shares tumbled about 3 percent to around $50 on Thursday.

Written by Andrew Moran

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