ΒιΆΉ΄«Γ½

Business

    • How it happened: Elon Musk to buy Twitter

    Share
    TORONTO -

    Twitter's board accepted Elon Musk's US$44-billion bid to take over the social media platform on Monday.

    The blockbuster offer made by the controversial Tesla and SpaceX leader, who has Canadian citizenship, will see Musk pay US$54.20 per share, a 38 per cent premium to the closing price of Twitter’s stock on April 1.

    Musk has vowed to transform the company by taking it private, reducing content moderation and launching a long-requested edit button on Twitter.

    How did the deal materialize?

    In January, Musk began buying significant shares in Twitter, racking up a five per cent stake in the company in March and just shy of 10 per cent in April.

    The more than 73.4 million shares he owned made him the company's largest shareholder, though he failed to notify the Securities and Exchange Commission that his stake in the company surpassed five per cent within the required time, violating U.S. laws. Some Twitter investors have sued him for failing to disclose the size of his stake promptly.

    Musk was due to join Twitter's board on April 9, though the arrangement prevented him from owning more than 14.9 per cent of Twitter's outstanding stock.

    By April 10, Twitter CEO Parag Agrawal had tweeted Musk had decided not to join the board and "this is for the best."

    But Twitter had not seen the last of Musk. On April 13, he filed his bid to buy the company.

    How does Canada figure into the bid?

    Royal Bank of Canada and Canadian Imperial Bank of Commerce are two of the 12 banks offering Musk financing for the bid, shows a commitment letter filed by Musk's X Holdings III LLC. RBC offered US$750 million and CIBC has pledged US$400 million.

    How did the board arrive at its decision to accept the offer?

    Approving bids like the one Musk made largely comes down to money, said Dave Valliere, a professor at Ryerson University's Ted Rogers School of Management.

    "The job of Twitter's board of directors is to do whatever is in the best interest of shareholders, and so when somebody comes along and offers a big premium over the existing value of the shares, it's pretty hard to turn that down," he said.

    What will Musk do with the company?

    Musk has mused about making several changes to Twitter.

    At an April 14 TED Talk, he said the company should be reluctant to delete tweets and mentioned that it should be "an inclusive arena for free speech."

    Musk has also suggested the company should offer users who pay for the company's premium subscription product Twitter Blue a verified mark, allow longer tweets and depend more on subscriptions than advertising for revenue.

    Perhaps his most popular recommendation has been an edit button, which he polled users on earlier this month. Twitter has long been working on the feature but has never rolled it out.

    While these ideas have generated Musk plenty of attention, Valliere said, "it's not automatically clear to me that he's got any great business strategy that does well for Twitter, the company.'

    How will Musk's ownership affect Twitter users?

    Just after Musk's bid was accepted, Musk tweeted that he plans to "make Twitter better than ever" by making the algorithms open source to increase trust, defeating the spam bots and authenticating all humans.

    Valliere believes the deal is really about Musk being "a rich guy that wants to control the megaphone."

    "He wants a platform that he has some control over and so that people aren't going to hold him accountable in certain ways that maybe exists now," the professor said.

    "I don't see that there's a huge benefit to the other users of Twitter. I don't see the huge benefits for the existing shareholders of Twitter, other than you've already paid them a lot of money."

    Musk has a reputation for being a volatile leader known for Twitter rants and rash business decisions. What will this mean for Twitter staff?

    Some who see Musk as successful will stick with the company or try to join, said Valliere.

    But others may leave because they doubt he has shareholders' best interests at heart and Valliere expects "turmoil at the top."

    "Certainly some of the upper management can be expected to depart because if this goes through, this is a vote of non-confidence in the existing team."

    How will Musk handle running a company that is being circled by regulators and international governments looking to restrict harmful materials from being posted online?

    Valliere believes Musk won't help Twitter weather such conditions better because he is known for picking fights with his critics.

    "He's going to try and stick a stake in the ground and so it's going to be an interesting thing because the legislative agenda is pointing towards greater accountability, but he's got lots of money, so which one would you want to bet on?"

    This report by The Canadian Press was first published April 26, 2022. 

    CTVNews.ca Top Stories

    A team of tornado experts is heading to Fergus, Ont. after a storm ripped through the area Sunday night.

    Why brain aging can vary dramatically between people

    Researchers are uncovering deeper insights into how the human brain ages and what factors may be tied to healthier cognitive aging, including exercising, avoiding tobacco, speaking a second language or even playing a musical instrument.

    Canada

    • A team of tornado experts is heading to Fergus, Ont. after a storm ripped through the area Sunday night.

    • Two nephews of the beloved Harry R. Hamilton share stories about his life and legacy.

    • The federal government is urging both sides in the British Columbia port dispute to return to the table after mediated talks broke off on Saturday, the first of three scheduled days.

    • The union representing some 1,200 dockworkers at the Port of Montreal has overwhelmingly rejected a deal with their employers association.

    World

    Politics

    • Murray Sinclair’s family members say the late justice and senator has been laid to rest according to his wishes.

    • Prime Minister Justin Trudeau announced voters in Cloverdaleβ€”Langley City will pick their next member of Parliament on Dec. 16.

    Health

    Sci-Tech

    Entertainment

    Business

    Lifestyle

    Sports

    • The Edmonton Oilers may have found the break they were looking for.

    • Winnipeg Jets goaltender Connor Hellebuyck, Colorado Avalanche centre Nathan MacKinnon and Buffalo Sabres goaltender Ukko-Pekka Luukkonen have been named the NHL's three stars of the week.

    Autos

    Local Spotlight

    For the second year in a row, the β€˜Gift-a-Family’ campaign is hoping to make the holidays happier for children and families in need throughout Barrie.

    Some of the most prolific photographers behind CTV Skywatch Pics of the Day use the medium for fun, therapy, and connection.

    A young family from Codroy Valley, N.L., is happy to be on land and resting with their newborn daughter, Miley, after an overwhelming, yet exciting experience at sea.

    As Connor Nijsse prepared to remove some old drywall during his garage renovation, he feared the worst.

    A group of women in Chester, N.S., has been busy on the weekends making quilts – not for themselves, but for those in need.

    A Vancouver artist whose streetside singing led to a chance encounter with one of the world's biggest musicians is encouraging aspiring performers to try their hand at busking.

    Ten-thousand hand-knit poppies were taken from the Sanctuary Arts Centre and displayed on the fence surrounding the Dartmouth Cenotaph on Monday.

    A Vancouver man is saying goodbye to his nine-to-five and embarking on a road trip from the Canadian Arctic to Antarctica.

    • Thousands of people gathered in downtown Vancouver Monday to observe the 100th Remembrance day ceremony at the Victory Square cenotaph, paying their respects to the Canadian soldiers who made the ultimate sacrifice for their country.

    • A suspect was arrested for allegedly brandishing a knife outside a Vancouver elementary school on Friday – just as the young students were heading home for the day.

    • The federal government is urging both sides in the British Columbia port dispute to return to the table after mediated talks broke off on Saturday, the first of three scheduled days.

    • Several hundred people gathered outside the Ontario legislature in Toronto to honour veterans and remember those who died fighting for their country.

    • Toronto is expected to see an economic boost to the tune of nearly $300 million thanks to Taylor Swift’s upcoming Eras Tour, which will be making a stop in Canada’s largest city for a six-show run later this month.

    • A man believed to be in his 40s has been rushed to a trauma centre following a stabbing in downtown Toronto.

    • Calgarians will be observing Remembrance Day at a number of different ceremonies across the city, including at the Hangar Flight Museum.

    • July 2025 may seem like it’s in the distant future, but for the St. Luke playground committee time is ticking to fundraise the $340,000 they still need to build a new playground.

    • Getting out to the mountains is even easier with a new bus route from a growing Germany-based service.

    • Crowds gathered in Ottawa and eastern Ontario on Monday to honour the sacrifice of men and women in uniform who gave their lives in service of Canada.

    • The Fleet Street Pumping station is Ottawa's oldest water facility. Up to two-thirds of the city's water supply can move through it,

    • The company confirms it will open the new Chipotle at 5671 Hazeldean Road on Thursday, in the former location of Benny & Co.

    • A 36-year-old Montreal man who was out on bail after allegedly uttering death threats to a woman is now accused of murdering her on the South Shore.

    • With fewer interments and rising maintenance fees, the money for Canada's largest military cemetery will run out in three to four years.

    • At around the same time as the Coalition avenir QuΓ©bec (CAQ) government announced a recruitment freeze in the public service, 26 orderly positions and seven administrative officer positions were cut at the Centre hospitalier de l'UniversitΓ© de MontrΓ©al (CHUM).

    • A member of Canadian Forces Base (CFB) Edmonton participated in the national Remembrance Day Ceremony in Ottawa on Monday.

    • Canada will be without captain Alphonso Davies for its upcoming CONCACAF Nations League quarterfinal against Suriname.

    • Thousands of Maritimers turned out in wet weather Monday to remember those who have served, and continue to serve, in Canada's armed forces for Remembrance Day.

    • A Cape Breton senior recalls her life in German-occupied France, and her mother’s death, during the Second World War.

    • Thousand of people gathered at the Menin Gate in the Ypres, Belgium for Monday’s Remembrance Day Ceremony.

    • Thousands gathered at the RBC Convention Centre on Monday to bear witness to a sombre and historic Remembrance Day ceremony.

    • One Manitoba veteran is on a mission to commemorate and honour those who served our country, and not just on Remembrance Day.

    • Winnipeg police have identified two men involved in a stabbing incident earlier this week.

    • There will be two ceremonies taking place in Regina for Remembrance Day, hosted by the Royal Canadian Legion.

    • Fire crews reported that no one was hurt after flames broke out in a home on Robinson Street in central Regina.

    • Regina author Valerie Crowther is celebrating the release of her book β€˜War Letters: Linking Lives in the Second World War.’

    • Saskatchewan RCMP are searching for a suspect after a man was seriously injured in a farm-related incident in Montreal Lake.

    • It was a somber day at Mosaic Stadium as members of the Saskatchewan Roughriders officially cleaned out their stalls and closed the book on the 2024 season.

    • The Regina Rams claimed the Hardy Cup after a hard fought battle against the Saskatoon Huskies 19-14 on Saturday in the first all Saskatchewan U-Sports western conference final since 2002.

    • Emergency crews responded to the scene on Road 68/Highway 2 east of Thamesford around 7 p.m.

    • The events will start at 10:15 a.m. with a parade that forms up in front of the Delta London Armories, marches east on Dundas Street and turns north onto Waterloo Street to Dufferin Avenue, the west to the Cenotaph.

    • A team of tornado experts is heading to Fergus, Ont. after a storm ripped through the area Sunday night.

    • A Barrie man is at the centre of an alleged $2.2 million stolen used car scheme.

    • The 75th anniversary of the Barrie Santa Claus Parade will feature floats, live entertainment, and new attractions, including Santa’s Fireside Gathering.

    • Environment Canada issued a weather alert for Barrie, Collingwood and surrounding areas, alerting residents about the wicked winds that are expected to pick up to 80 kilometres per hour in the afternoon hours.

    • Representatives of the Windsor Veterans Memorial Services Committee, military representatives, wreath bearers, government officials, and members of the public will attend the Cenotaph at City Hall Square for the outdoor service.

    • Windsor Paralympic champion, Danielle Campo, has been crowned the number one Inspirational Speaker of the Year for 2024 at the Inspirational Speaking Finals.

    • One person has been arrested after Chatham-Kent Police Service (CKPS) received multiple complaints about an alleged drunk driver.

    • Environment Canada says heavy rain and winds could cause power outages on Vancouver Island as an "intense" storm system is set to hit the B.C. coast Sunday.

    • Six deer were struck by vehicles in six different locations in a six-hour period on B.C. highways on Saturday, according to the transportation ministry.

    • The union for locked-out port workers in British Columbia says the BC Maritime Employers Association cut off talks in less than an hour Saturday, refusing to budge on a final offer that the union has so far rejected.

    • The emergency department at South Okanagan General Hospital in Oliver, B.C., will be closed for 31 hours this weekend, the second such closure in a week and the third since the start of November.

    • Police in Kamloops, B.C., are reminding parents and guardians to check their children's Halloween candy after receiving a report of a mother finding a razor blade in one of her daughter's treats.

    • More than two years after Alannah Brown and Douglas Barker were found dead north of Penticton, police are asking for help identifying a vehicle they believe was associated with the crime.

    • The Southern Alberta Recreation Association is officially announcing the Town of Taber as next year’s host for the Southern Alberta Summer Games.

    • The Lethbridge Hurricanes broke open a close game with three goals in the first two minutes of the third period as they defeated the Warriors 7-3 in a game played Friday night in Moose Jaw.

    • There might not a lot snow just yet, but many southern Albertans are still itching to get outdoors.

    • It was just days before the COVID-19 pandemic shut the world down when the Shaft Bottom Boys of Sudbury broke a world record for 'Deepest Concert Underground.' Now, more than four years later, a Timmins band is looking to take the title.

    • Police say that a 16-year-old was attacked with a sword Nov. 3 in Cobalt, Ont., in a case of intimate partner violence.

    • Police have arrested a 15-year-old in connection with a break-in and $50,000 in damage done to the Centennial Arena in Elliot Lake in September.

    N.L.

    Shopping Trends

    The Shopping Trends team is independent of the journalists at ΒιΆΉ΄«Γ½. We may earn a commission when you use our links to shop.Β Read about us.

    Stay Connected
    Follow ΒιΆΉ΄«Γ½