Elon Musk privatizes Twitter and receives a $500 million investment from Binance

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After a few months of negotiations and various speculations, Billionaire Elon Musk has closed a $44 billion deal to include Twitter in its broad portfolio of companies that include Tesla and Space X.

After purchase, Musk made a series of firings of key executives, including CEO Parag Agarwal and head of legal and political affairs Vijaya Gadde. as a clear movement that seeks to reorganize the company for the future, in which it has also been announced that Twitter will cease to be listed on the New York Stock Exchange.

Twitter shares have been frozen

As part of the deal regarding the acquisition of the company, Twitter, after 9 years, will cease to be listed on the New York Stock Exchange (NYSE), and will become a private company. For this reason, trading in Twitter shares has been halted on the stock exchange and Musk has agreed to pay $54.20 per Twitter share to all of the company’s shareholders..

“I think it’s huge that this has languished for a long time, but it has incredible potential. While myself and other investors are obviously overpaying for Twitter right now, Twitter’s long-term potential, in my opinion, is orders of magnitude greater than its current value.”

Elon Musk

What advantages does the privatization of Twitter offer Musk?

Although this may seem negative in a certain way, the truth is that it can offer many regulatory advantages to Musk who has had a quite controversial relationship with the United States Securities and Exchange Commission (SEC) and can help you stay out of public financial scrutiny, since you no longer have to file quarterly reports on the health of your business.

This is intended to transform Twitter’s business model and make it private but it is not presented as a final decision since the same Elon Musk has expressed his desire to take the company public 3-5 years from now.

Binance made a $500 million investment in Twitter

The CEO of Binance, Changpeng “CZ” Zhaohad expressed his desire to invest in Twitter in May 2022, when one of the first approaches of Elon Musk towards the purchase of Twitter was announced in April of this year.

just a few hours ago, The founder of Binance has confirmed a $500 million investment after Musk finalized the acquisition of the company.as a sign of its commitment to what will be the new direction of the cryptocurrency-friendly social network, supported by 18 other investors, including cryptocurrency investment firms such as Sequoia Capital Fund, Fidelity Management and Research Company.

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