Elon Musk initiated anacquisition of the Americansocial media companyTwitter, Inc. on April 14, 2022, and concluded it on October 27, 2022. Musk had begun buying shares of the company in January 2022, becoming its largest shareholder by April with a 9.1 percent ownership stake. Twitter invited Musk to join itsboard of directors, an offer he initially accepted before declining. On April 14, Musk made an unsolicited offer to purchase the company, to which Twitter's board responded with a "poison pill" strategy to resist ahostile takeover before unanimously accepting Musk's buyout offer of $44 billion on April 25. Musk stated that he planned to introduce new features to the platform, make its algorithmsopen-source, combatspambot accounts, and promotefree speech, framing the acquisition as the cornerstone of X, an "everything app".
In July, Musk announced his intention to terminate the agreement, asserting that Twitter had breached their agreement by refusing to crack down on spambot accounts. The company filed a lawsuit against Musk in theDelaware Court of Chancery shortly thereafter, with a trial scheduled for the week of October 17. Weeks before the trial was set to begin, Musk reversed course, announcing that he would move forward with the acquisition. The deal closed on October 28, with Musk immediately becoming Twitter's new owner and CEO. Twitter wastaken private and merged into a newparent company namedX Corp. Musk promptly fired several top executives, including previous CEOParag Agrawal. Musk has since proposed several reforms to Twitter andlaid off half of the company's workforce. Hundreds of employees then resigned from the company after Musk issued an ultimatum demanding they commit to "extremely hardcore" work.Linda Yaccarino was appointed CEO of X Corp. In July 2023, theTwitter service was rebranded as X.
Reactions to the buyout were mixed, with praise for Musk's planned reforms and vision for the company, particularly his calls for greater free speech, but criticism over fears of a potential rise inmisinformation and disinformation,harassment, andhate speech on the platform. Within the United States,conservatives have largely supported the acquisition, while manyliberals and former Twitter employees have voiced concerns about Musk's intentions.Since becoming owner, Musk has faced backlash for his handling of the company andaccount suspensions, including theDecember 2022 suspensions of ten journalists.
Elon Musk communicated with Dorsey, Agrawal, and Taylor prior to proposing a buyout ofTwitter Inc.
BusinessmanElon Musk published his firsttweet on his personalTwitter account in June 2010,[1] and had more than 80 million followers by April 2022.[2] In 2017, in response to a tweet suggesting that he buyTwitter, Inc., Musk replied, "How much is it?"[3] On March 24, 2022, Musk began tweeting criticisms of Twitter,[4] polling his followers on whether the company adhered to the principle that "free speech is essential to a functioning democracy".[5] Days later, he discussed the future of social media with Twitter co-founder and former CEOJack Dorsey and explored the possibility of joining Twitter'sboard of directors withprivate equity firmSilver Lake co-CEO Egon Durban. He relayed this idea to Twitterboard chairBret Taylor and CEOParag Agrawal, proposing to eithertake the company private or start a rival social media platform.[6] Dorsey responded to Musk with a text message, saying he hoped Twitter could becomeopen-sourced and that he had unsuccessfully pushed for Musk's induction into Twitter's board a year earlier, a move that had prompted his departure from his role as CEO.[7]
In September 2022, it was revealed that the CEO ofAxel Springer, billionaireMathias Döpfner urged Musk to buy Twitter through a text message exchange dated March 30, 2022.[8] According toWall Street Journal, "Before and during Mr. Musk’s breakneck takeover of Twitter, a close-knit group of libertarian-leaning activists and businessmen have been encouraging him to get involved. This group includes the so-called PayPal mafia—former executives at the online payments company who include Mr. Musk, the investorPeter Thiel and entrepreneurDavid Sacks—as well as ancillary figures like the venture capitalistSteve Jurvetson, an early Tesla investor who once served on the auto maker’s board; and Mr. Musk’s brother,Kimbal, a Tesla board member, according to people familiar with the matter." TheWSJ also cited Seth Dillon, the CEO of the Babylon Bee, as a source of influence.[9]The Nation notes the role of the Saudi government, which had close financial ties with not only Musk, but also other Silicon Valley elites such as Thiel,Ben Horowitz and their companies,Palantir andAndreessen Horowitz, as well asTWG Global (later, Palantir, TWG Global and xAI would form a joint venture).[10]
Musk began purchasing Twitterstock on January 31, 2022.[4] On April 4, he announced that he had acquired 9.2 percent of the company's shares totaling $2.64 billion,[11] making him the company's largestshareholder.[12] Following the announcement, Twitter's stock experienced its largest intraday surge since the company'sinitial public offering (IPO) in 2013, rising by as much as 27 percent.[13] The next day, Twitter invited Musk to join the company's board,[14] which Musk accepted.[15] This had been recommended to the board by Twitter's Nominating and Corporate Governance Committee three days earlier, with some board members expressing concern about potential "adverse impacts on stockholder value".[6] The position would have prohibited Musk from going beyond a 14.9 percent ownership stake and limited his ability to speak publicly about the company.[16][6] That day, Musk phoned Dorsey, who declined Musk's suggestion for him to remain on the board.[6]
On April 11, after publishing several tweets critical of the company, Musk announced he had decided not to join the board.[17] Instead, he informed Twitter that he intended to make an offer totake the company private. On April 12, Twitter's board met with lawyers and financial advisors to deliberate the ramifications of such a deal as well as their options,[6] while a company shareholder sued Musk for allegedly manipulating the company's stock price and violatingSecurities and Exchange Commission (SEC) rules.[18]
On April 14, 2022, Musk made an unsolicited and non-binding offer to Twitter to purchase the company for $43 billion, or $54.20 per share, and take it private.[20] Though the offer was made to company management, the bid was described as ahostile takeover attempt because of the implied threat to purchase the outstanding stock if management declined.[21][22] The board responded that it would "carefully review the proposal".[23]
In aTED interview, Musk said he aimed to make Twitter a "platform for free speech around the globe", hailingfree speech as a "societal imperative for a functioning democracy" and insisting that he had not made the offer to increase his wealth.[24][25] Critics noted that he showed more interest in altering Twitter'smoderation policies than in fighting government censorship.[26] According toThe Washington Post, the banning of accounts such asThe Babylon Bee had prompted Musk to initiate the acquisition.[27] The price of $54.20 per share is believed to be a reference to420, a slang term incannabis culture formarijuana consumption.[28]
On April 15, Twitter's board of directors announced a "poison pill" strategy which would allow shareholders to purchase additional stock in the event of a hostile takeover; the plan expired on April 14, 2023.[29] On April 17, Taylor was urged by Twitter's largest institutional shareholders to "seriously consider" the offer.[6] On April 20, Musk disclosed that he had secured financing provided by a group of banks led byMorgan Stanley,Bank of America,Barclays,MUFG,Société Générale,Mizuho Bank, andBNP Paribas, for a potentialtender offer to acquire the company.[30][31] The funding included $7 billion ofsenior secured bank loans; $6 billion insubordinated debt; $6.25 billion in bank loans to Musk personally, secured by $62.5 billion of his Tesla stock; $20 billion in cash equity from Musk, to be provided by sales of Tesla stock and other assets; and $7.1 billion in equity from 19 independent investors.[32][33][34]
The initially proposed $13 billion in money borrowed by Twitter was equivalent to seven times the company's 2022 projectedoperating cash flow; some banks found that multiple too risky and opted to participate only in the $12.5 billionmargin loan to Musk.[35] The debt was estimated to cost Twitter approximately $1 billion in annual interest and fees.[30] Two days after announcing his bid, Musk registered three holding companies under the name "X Holdings" in preparation for his takeover.[36] Tesla shares fell 12 percent on the day after the acquisition was announced, amid smaller declines in the broader markets. Musk incurred a $21 billion paper loss that day.[37]
On April 23, Musk informed Taylor that his offer was "best and final", urging him to accept in a letter sent the following day. He said that Jack Accepted the deal and finaled it.[6] Multiple outlets subsequently reported that Twitter was in final negotiations to accept Musk's offer, with a deal expected to be reached by the next day,[38][39][40] thoughReuters cautioned that the deal could still fall apart.[41] On April 25, Twitter shares rose by 5 percent following reports that Twitter was poised to accept Musk's offer.[42] Twitter advisorsGoldman Sachs andJPMorgan Chase approved of the deal, deeming it fair from a financial perspective.[6] Twitter's board publicly and unanimously accepted the buyout offer for $44 billion, and Twitter was to become a private company once the transaction was complete, sometime in 2022.[43][44] Negotiations with Musk were led by the board's transaction committee, composed of Taylor,Martha Lane Fox, andPatrick Pichette.[45] The deal would require shareholder andregulatory approval before it could be finalized,[46] though analysts believed it was unlikely to be challenged by regulators.[47]
Musk was barred from disparaging the company or its employees when tweeting about the acquisition before the transaction closed.[48] The agreement also stipulated that if Musk failed to close the acquisition, he would be required to pay Twitter a $1 billionbreakup fee.[49][50] Agrawal was set to receive $39 million from the buyout, while Dorsey would receive $978 million.[51] Musk had privately selected a new CEO to replace Agrawal upon completion of the acquisition,[35] though he was expected to serve as interim CEO in the months after its completion.[52] Tesla's stock sank by more than $125 billion the next market day, causing Musk to lose about $30 billion of hisnet worth.[53][54] Within three days after Twitter agreed to be acquired, Musk had sold $8.5 billion of his Tesla shares.[55]
After the acceptance was announced, Musk said that his first goal would be to make thealgorithm that ranks tweets in the content feed open-sourced, in an effort to increase transparency. He has also stated that he intended to removespambots and "authenticate all real humans",[56] suggesting that he might convert Twitter's San Francisco headquarters into ahomeless shelter.[57][58] Musk said he lacked confidence in Twitter'scorporate management,[59] telling banks that he had considered reducing executive and board pay.[35] He published tweets critical of decisions made by Twitter executives such asVijaya Gadde,[60] who was subsequently harassed by Twitter users using racist and sexist language.[61][62] On April 28, Twitter toldadvertising agencies that their work would not be seen next to offensive material.[63] Musk also discussed with bankers with the ideas of cutting jobs and costs, encouraginginfluencers to be creative, and addingsubscription services to Twitter.[64][65]
On May 13, Musk revealed that he had placed the deal "on hold" in the wake of reports that 5 percent of Twitter's daily active users were spam accounts,[72] causing Twitter shares to drop more than 10 percent.[73] Musk clarified that he remained committed to the acquisition,[74] and Agrawal stated he expected the deal to close.[75] In response to a May 16 Twitter thread in which Agrawal said an external review into the platform's users was impractical, Musk tweeted out apoop emoji.[76] The following day, Musk reiterated that the acquisition could not "move forward" until Twitter could prove the aforementioned reports false,[77][78] urging the SEC to investigate Twitter's daily user numbers.[79] The same day, Twitter filed new documents with the SEC, including a detailed timeline of Musk's purchase,[6] and affirmed they would "enforce the merger agreement" regardless of Musk's actions.[80] On May 25, Musk abandoned plans to partially fund the deal through margin loans against Tesla stock, instead opting to pledge an additional $6.25 billion in equity financing.[81][82] Dorsey departed Twitter's board the same day,[83] while Twitter investor William Heresniak filed aclass-action lawsuit against Musk, alleging that he had violated corporate laws in California bymanipulating the market.[84] The lawsuit further declared that Musk was not permitted by the acquisition contract to place the deal on hold, and that Musk's misleading statements had contributed to declining Twitter stock prices.[85][86]
Former Twitter security chiefPeiter Zatko claimed that the company had misled the public on its privacy and security woes.
On June 3, the acquisition was cleared by U.S. antitrust review.[87] In an email sent by Musk's attorney to Twitter three days later, Musk threatened to terminate his agreement with Twitter because the company had refused to give him data pertaining to its users.[88][89] Twitter responded that they would continue to cooperate with Musk to ensure that the transaction was closed in accordance with their agreement.[90] On June 8, Twitter's board complied with Musk's demands, agreeing to provide him with a "firehose" data stream of tweets.[91][92] A week later, the SEC asked Agrawal to provide information on how Twitter estimated its number of spam accounts, to which the company obliged; the SEC concluded its inquiry on July 27.[93][94] Musk attended an all-hands meeting on June 16 to answer questions from Twitter employees,[95] discussing Twitter's content moderation policy, freedom of speech, potentiallayoffs,remote work, and "the cosmic nature of Twitter".[96][97][98] Musk also expressed his desire for Twitter to reach one billion active users,[99] and pledged his commitment to advertising as a source of revenue for Twitter.[100]
In a complaint filed byWhistleblower Aid with the SEC,U.S. Justice Department, and FTC on July 6, former Twitter security officerPeiter Zatko accused several Twitter executives, including Agrawal and certain board members, of making false or misleading statements about privacy, security, and content moderation on the platform in violation of theFederal Trade Commission Act of 1914 and SEC disclosure rules. These included misrepresentations to Musk made during the course of the acquisition bid, with the complaint specifically calling Agrawal's May 16 thread deceptive.[101][102][103] In a July 7conference call, Twitter revealed that over one million spam accounts were removed daily, and reiterated that it was impossible to externally determine the exact number of these accounts as it would involve private user data.[104] That same day,The Washington Post reported that the deal was "in peril" amid a slowdown in discussions on funding.[105]
Twitter formally launched its lawsuit against Musk at the Delaware Court of Chancery on July 12,[113] with Musk tweeting in response, "Oh the irony lol".[114] Twitter requested that the trial be held from September 19 through September 22,[115] before the deal's originally scheduled "drop dead" date on October 24.[116] Musk's legal team objected to this, asking for the trial to be held from February 13 through February 22, 2023.[117] On July 19, judgeKathaleen McCormick ruled that the trial would last for five days in October,[118][119] with Twitter seeking an October 10 start date.[120] During its quarterly earningsinvestor call on July 22, Twitter cited the "chaos" caused by the proposal as the primary factor for its decline in revenue.[121] In a letter to McCormick on July 26, Musk's lawyers complained that Twitter had hindered them from commencing thediscovery process and requested an October 17 start date,[120] which McCormick granted three days later with a duration of five days.[122]
In a tweet on August 6, Musk challenged Agrawal to apublic debate on Twitter's spambot accounts, before polling his followers on whether they believed that less than 5 percent of Twitter accounts were "fake/spam".[123] On August 10, Musk sold 7.92 million Tesla shares worth a total of $6.9 billion as backup should he lose the lawsuit, despite previously stating he would no longer sell Tesla stock.[124] The next week, McCormick ordered Twitter to produce documents from Beykpour, which Musk's team had requested along with files from 22 other Twitter employees and 41 "custodians".[125] Shortly thereafter, Musk subpoenaed Dorsey.[126] Other businessmen and investors subpoenaed includeMarc Andreessen, Ellison,David Sacks, andJoe Lonsdale, while Twitter and Musk also subpoenaed Goldman Sachs, Morgan Stanley, JPMorgan Chase, Andreessen Horowitz, Sequoia Capital,Salesforce,Mastercard, and more. Sacks and Lonsdale were both irritated that they were being subpoenaed, with the former filing a failed motion to dismiss the subpoena. In total, lawyers for Twitter issued over 84 subpoenas, while Musk's lawyers issued more than 36.[112]
Facing increasing pressure from Musk, Twitter announced that it would combine its health team, tasked with preventing non-consensual nudity andchild sexual exploitation on the platform, with its anti-spam team.[127] McCormick rejected much of Musk's team's "absurdly broad" request for data pertaining to all of Twitter's users, but ordered the company to produce data from 9,000 accounts it previously audit sampled.[128] Musk filed a "termination letter" with the SEC on August 29, citing Zatko's claims as evidence Twitter breached their contract,[129][130] before asking McCormick to delay the trial by a few weeks.[131] McCormick rejected the request,[132] and Musk's team sent a third termination letter to Twitter.[133] On September 13, Zatko testified before theSenate Judiciary Committee,[134][135][136] while Twitter shareholders voted in favor of the acquisition.[137][138] Musk privately offered to purchase Twitter at the reduced prices of $31 billion and $39.6 billion, both of which the company rejected.[139][140]
On October 3, Musk's legal team informed Twitter that Musk had changed his mind and decided to move forward with his proposed acquisition at the originally agreed-upon price of $54.20 per share, on the condition that Twitter drop its lawsuit.[141] The reason for this reversal was attributed to concerns from Musk's team that they would not be able to prove that there was amaterial adverse effect justifying a break from contract. Musk and Agrawal's depositions were originally scheduled for October 6 and 10, respectively.[142] Musk stated that his purchase of Twitter was part of his ambition to create an "everything app" called X, which would offer many different services.[143] In response, McCormick asked both sides to propose to her how they should proceed. Twitter shares surged by 23 percent as a result of Musk's announcement.[142] Neither Twitter nor Musk responded to McCormick's request, prompting her to announce that the trial would go forward as planned.[144]
On October 6, McCormick agreed to a request by Musk to postpone the trial to October 28 so Musk could finalize hisdebt financing for the acquisition, adding that the trial would be rescheduled to November if the deal did not close by then.[145][146] During this time, Musk deposited a $1 billion loan from his companySpaceX, paying back the loan with interest the following month.[147][148] On October 13, court filings revealed that Musk was being investigated by theU.S. government for his conduct in the proposed buyout.[149][150] Musk later stated that he believed Twitter's long-term value would exceed the price of $54.20 per share, which he considered an overpayment.[151] On October 20,The Washington Post reported that Musk intended to terminate 75 percent of Twitter's staff, and that Twitter executives were keen on selling the company to Musk so they could mitigate their planned payroll and infrastructure cuts.[152][153] In an open letter, Twitter employees condemned Musk's intentions and warned of negative consequences on the future of Twitter.[154][155]Bloomberg News and thePost further reported that officials in theBiden administration were considering anational security review of Musk's proposed acquisition and other ventures via theCommittee on Foreign Investment (CFIUS),[156][157] with the possibility ofU.S. PresidentJoe Biden blocking the purchase if need be;[158] theWhite House denied the reports.[159][160]
By October 21, both parties' bankers and lawyers were set to complete the paperwork for the acquisition by the end of the month, with the deal expected to close by then.[161][162] The banks funding the acquisition were to hold the $13 billion worth of debt incurred as opposed to selling it.[163][164] In a video call with banks who helped Musk fund the acquisition, Musk assured them he would complete the buyout by the deadline.[165] Musk made a trip to Twitter's headquarters on October 26, tweeting a video of him jokingly carrying a kitchen sink at the site's lobby and changing his Twitter bio to "Chief Twit".[166][167][168] Musk also told Twitter employees that while layoffs were still likely to happen, he did not intend to do so at the scale thePost had previously reported.[169][170] The next day, Musk wrote in an open letter to advertisers that Twitter would not become a "free-for-all hellscape", reiterating that his motives for the purchase were not based on greed but rather a desire to create "a common digital town square".[171] He then asked Tesla engineers to meet with Twitter's product managers in order to assess the platform'scodebase,[172] which was frozen until November 1.[173]
In the afternoon of October 27, Musk and Twitter closed the deal, with Musk tweeting "the bird is freed". Musk immediately became Twitter's new owner, summarily firing Agrawal,chief financial officer (CFO)Ned Segal, Gadde, andgeneral counsel Sean Edgett,[174][175][176] with the executives escorted out of the company's headquarters by security.[177] This move came to the surprise of many involved, who had expected Musk to allow the executives to voluntarily resign; Agrawal had prepared a draft of hisresignation letter before his access to his Twitter email account was cut off. According toWalter Isaacson's biographyElon Musk (2023), Musk "meticulously" changed his plans so "he could terminate their employment before their stock options would vest", seeking retribution for Agrawal's handling of the spambot incident.[178]
Agrawal, Segal, and Gadde were set to receive "golden parachute" sums of $38.7 million, $25.4 million, and $12.5 million, respectively,[179][180] butThe New York Times reported that Musk was unlikely to make the payments because the executives had been dismissedfor cause.[181] According to theFinancial Times, Musk's justification for this assertion was that the company had been mismanaged, and the executives were "weighing their legal options over the decision".[182] Dorsey retained his $1 billion ownership stake,[183][184] and several other executives departed Twitter in the ensuing days.[185][186][187]
Musk assumed the position of CEO,[188][189] merging the company with X Holdings and dissolving Twitter's board of directors.[190] With this merger, Twitter ceased to be an independent company, withX Corp. later created in March 2023 to house the company.[191][192] Musk uses the title "Chief Twit" to refer to his position as CEO.[193] A "war room" was established at Twitter, with Musk meeting with Spiro, Sacks, and others to discuss his next steps.[194] According toThe New York Times, the group's two primary objectives were to reduce the size of Twitter's workforce and overhaul the platform's mobile app.[195] Twitter employees were not formally informed of the change in management,[196] with Musk originally said to be planning a town hall meeting with employees but ultimately not doing so.[174][197] The next day, Twitter shares ceased trading in accordance with Musk's pledge to take the company private;[198][199][200] the company'sstock ticker wasdelisted from theNew York Stock Exchange (NYSE) on November 8.[201]
Since becoming owner, Musk has enacted a series of changes, including overhaulingTwitter's verification system by requiring new applicants to purchase aTwitter Blue subscription.[202] Many Twitter staff members were directed to extend their working hours in order to meet Musk's deadlines for his desired changes to the platform.[203] On November 4, Musk laid off roughly half of Twitter's workforce,[204][205] and two weeks later, he issued an ultimatum to employees to commit to "extremely hardcore" work in order to realize Musk's vision of "Twitter 2.0", or leave.[206][207] Hundreds of employees resigned in response.[208][209] From the layoffs and resignations, the company went from close to 7,500 employees to approximately 1,500,[210] a reduction of about 80%.
Meanwhile, Musk began restoring previously banned accounts such asJordan Peterson,Kathy Griffin,The Babylon Bee, andDonald Trump,[211][212] while suspendinganti-fascist accounts at the urging of far-right figures,[213] as well as accounts that parodied Musk.[214][215] Musk also relaxed the platform's hate speech policies and removed its policy prohibitingCOVID-19 misinformation,[216][217] resulting in an increase in hate speech.[218] In December, Musk faced backlash after banningElonJet, aTwitter bot account operated byJack Sweeney which tracked Musk's private jet in real-time using publicly accessible data.[219][220] These protests intensified when Musksuspended multiple journalists who had been covering the ElonJet incident.[221][222][223] Days later, Musk conducted a Twitter poll asking users whether he should step down as CEO of Twitter,[224][225] to which voters responded in the affirmative.[226][227] Musk stated he would step down after selecting his replacement,[228] and he was succeeded byNBCUniversal advertising sales chairLinda Yaccarino in June 2023.[229]
Musk's acquisition of Twitter was principally responsible for the development ofThreads, a social media platform which closely resembles Twitter, by rival companyMeta Platforms. Work began on the service in November 2022, and it was released on July 5, 2023, amidst continued backlash to changes to Twitter enacted by Musk and Yaccarino.[230][231] In response, Twitter threatened to sue Meta overintellectual property infringement.[232] Agrawal, Segal, and Gadde filed a lawsuit against Twitter in April 2023, claiming that the company had failed to pay them for the legal fees they had incurred during their tenure.[233] McCormick ruled in the executives' favor in October.[234]
In June, X Corp. sued Wachtell to recoup a portion of the $90 million fee the law firm had paid, accusing the firm of "unjust enrichment" for charging a bonus fee on successful completion of the acquisition when the agreement with prior Twitter management stipulated billing only on an hourly basis.[235][236] The Twitter app was rebranded as X in July, an unprecedented decision which has created confusion among users.[237] In September, Musk failed to appear before the SEC in response to theagency's investigation into his purchasing of Twitter stock the year prior, prompting a lawsuit.[238]The Wall Street Journal reported in October 2023 that the seven major banks that had provided Musk's acquisition loans failed to follow thestandard practice of quickly selling down their exposure to other banks due to a lack of appetite for the debt since Musk took over, instead expected to mark down the debt by at least 15 percent in order to sell it.[239]
The company's financial outlook improved in 2025, partly due to Musk's close relationship withPresident Donald Trump and the platform's move away from an advertising-only model toward user subscriptions and artificial intelligence, leading to a revival in investor interest and successful refinancing of the remaining debt. By April 2025, banks had sold off the last of the debt related to the company at about 98 cents on the dollar, in whatBloomberg News described as a remarkable turnaround.[240] Earlier in March, Musk announced thatxAI, the AI company he founded two years earlier, would acquire X in an all-stock transaction for a total enterprise value of $45 billion, a billion more that what he paid in 2022.[241][242]
In August 2024, court documents revealed the names of the nearly 100 stakeholders who took part in the October 2022 takeover. Shareholders included includingBill Ackman, Saudi PrinceAlwaleed bin Talal, Jack Dorsey, venture capital firms Andreessen Horowitz and Sequoia Capital, (which both had joined a recent $6 billion funding round for Musk’s AI startup xAI). Also named were8VC (led by Palantir co-founderJoe Lonsdale) and Gigafund (co-founded by PayPal Mafia memberLuke Nosek and Stephen Oskoui, both alsoFounders Fund alumni[243]) — both investors in Musk’s other ventures likeThe Boring Company — as well asScott Nolan, a formerSpaceX engineer and now partner at Peter Thiel'sFounders Fund.Binance, which invested $500 million in Musk's 2022 takeover, and longtime Musk supporterCathie Wood are also among the names. The filing also includes lesser-known investors like Italian financial firm UnipolSai S.p.A.[244][245]
Following Musk's induction to Twitter's board of directors on April 5, Agrawal wrote that he believed Musk's appointment would bring long-term value to the company, while Dorsey wrote that Musk "cares deeply about our world and Twitter's role in it".[15] Dorsey privately relayed his appreciation to Musk for his commitment, texting that he trusted Musk.[7] On April 11, Agrawal stated that he believed Musk's withdrawal from the board was "for the best", noting that the company would "remain open to his input".[17]
Musk's offer to take over Twitter was met with both praise and criticism.[246] On April 14, Twitter employees expressed concern with Musk's views on free speech.[247][248] Media outlets expressed concerns that his proposed changes to Twitter would result in an increase indisinformation andonline harassment.[246][249]Jim Cramer ofCNBC opined that the Twitter board would have "no choice" but to reject Musk's offer due to potentialpersonal liability faced by the board members.[250] On April 19, theNational Urban League urged Twitter to turn down Musk's takeover bid, warning of potentially negative consequences on users'civil rights.[251]
Agrawal applauded the purchase and assured employees that no layoffs were planned at that time,[256][257] adding he was proud of Twitter employees "despite the noise" around the company.[60] He also led an all-hands meeting on April 29 to address concerns raised by employees.[258] Dorsey endorsed the sale, saying that "taking [Twitter] back from Wall Street is the correct first step" and that he trusted Musk to be the owner of the company.[259] Former Twitter CEODick Costolo denounced Musk's criticism of the company.[60] Gadde allegedly cried during a meeting about the announcement and was subjected to online trolling.[260] Musk's June 17 meeting with employees was generally negatively received by participants, who found Musk's statements "incoherent" and "uninspiring".[261] Musk was repeatedly derided and mocked by Twitter employees on their internalSlack channels after the deal was brokered.[142]
By April 27, 30,000 new users had joined the decentralized network of servers running open-sourceMastodon software.[270] Conservative Twitter accounts experienced a significant increase in followers, while liberal ones experienced a slight decrease;[271] additionally, thousands ofleft-leaning users deactivated their accounts following the buyout.[272] LGBTQ+ users and activists expressed apprehension about the deal based on tweets by Musk mockingtransgender people, fearing that there-platforming ofsuspended Twitter accounts would lead to a rise inonline harassment andhate speech.[273][274] On June 3, a group of politicaladvocacy groups which included theCenter for Countering Digital Hate,GLAAD, andMediaJustice initiated a campaign to block the proposal by calling for a review of the deal by the government and a boycott of the platform by advertisers.[275]
Edgett instructed employees not to share commentary on the purported cancellation; nonetheless, several Twitter employees posted humorous messages making light of the situation.[284] Tesla shares rose 2.11 percent in the hours after Musk's announcement.[285] Trump criticized Musk and called the acquisition "rotten",[286] which led to a protracted feud between the two.[287][288] With the exception of Trump, most conservatives sided with Musk, with former White House chief strategistSteve Bannon attacking Twitter for allegedly lying about the prevalence of its spambot accounts andTurning Point USA CEOCharlie Kirk musing that Musk may have been seeking to "expose" Twitter the whole time.[289] In an email sent to Twitter's employees in response to Zatko's complaint, Agrawal sharply rejected the claims and called them a "false narrative".[290]
Internally, Twitter employees expressed concern that Musk would lay off employees before they receive their compensation payments,[180] among other messages criticizing Musk and voicing solidarity with each other.[296] Amid conflicting reports on whether Musk was planning sweeping layoffs, many employees expressed uncertainty and fear on Slack,Discord, andLinkedIn.[302][303] Women's rights activistSeyi Akiwowo tweeted her disappointment with Gadde's dismissal, while children's rights activistBeeban Kidron said that Musk's newfound power would not result in more free speech.[301] PodcasterJoe Rogan praised Musk for his aspirations,[298] while right-wing Twitter accountLibs of TikTok rejoiced over the news of the purchase.[297] Media personalityStew Peters, who had been blocked from Twitter for months, attempted to circumvent the block after the purchase using a new account, which was later suspended.[296]Margarita Simonyan, editor-in-chief of the Russian state-controlledRT broadcasting service, demanded that Musk lift her Twitter suspension.[197] Bin Talal Al Saud congratulated Musk on the purchase,[296] and JPMorgan Chase CEOJamie Dimon urged Musk to eradicate spambot accounts.[304] Tesla rivalGeneral Motors announced it would temporarily stop paid advertising on Twitter.[300] Advertising agenciesIPG Mediabrands andOmnicom Media Group recommended their clients temporarily pause advertising on Twitter due to safety and trust concerns over Musk's ownership.[305][306] A slew of companies proceeded to do so, includingAudi,Bentley, theCarlsberg Group,General Mills,Lamborghini,Mondelez International,Porsche,Pfizer,REI, and theVolkswagen Group.[307][308]Media buying agencyGroupM also advised its clients against procuring advertisements from Twitter.[309] Alt-tech social media platformParler welcomed Musk's purchase, while alt-tech platformGettr was more skeptical, believing Twitter was "fundamentally broken".[310] Similarities have been drawn between the acquisition and the 2022 filmGlass Onion: A Knives Out Mystery, with some viewers comparing Musk to the character of Miles Bron, though directorRian Johnson stated that the similarities were purely coincidental.[311][312]
Online reception to Musk's completion of the purchase was mixed.[313] According to Memetica, a digital investigations company, several far-right figures experienced a significant increase in followers after the deal was finalized, while manyprogressives experienced a significant decrease, although it is unclear if Musk's takeover drove the changes in followers.[314] Mastodon once again experienced a surge in sign-ups.[315] Multiple celebrities in theentertainment industry announced their departure from the platform,[316][317] while some left-wing influencers such asJohn Pavlovitz andRob Reiner urged fellow leftists to remain on Twitter for the time being.[316][314] The Network Contagion Research Institute (NCRI) observed a 500 percent spike in the use of the racial slur "nigger" in the 12 hours after Musk completed the acquisition, whileThe Washington Post noted an increase in pro-Nazi, misogynistic, and anti-LGBTQ+ tweets.[197] Basketball playerLeBron James expressed concern over the NCRI's report, condemning "unfit people saying hate speech is free speech".[318] Twitter responded by saying that the accounts using racial slurs were part of a "trolling campaign" and would be banned summarily.[319][320] TheCenter for Countering Digital Hate reported that anti-Black, anti-gay, and anti-transgender slurs had increased since Musk took control of Twitter, while theAnti-Defamation League reported an increase in antisemitic content.[321]
Anticipating a takeover, Elizabeth Lopatto ofThe Verge predicted that it would lead to a mass employee exodus and a possible reinstatement of Trump's Twitter account.[322] After the acquisition announcement, Alex Werpin ofThe Hollywood Reporter warned of widespread repercussions.[323] Greg Bensinger ofThe New York Times argued that Musk's acquisition was "about controlling a megaphone" rather than free speech,[324] while Elizabeth Dwoskin ofThe Washington Post remarked that Musk's free speech vision for Twitter was considered by technologists to be outdated and impractical.[325] Don Pittis ofCBC News noted the controversy associated with the wealthy gaining control of media platforms.[326]Brendan O'Neill ofSpiked observed that Musk's purchase of Twitter and the resulting backlash represented a "battle for control of the Internet",[327] withBusiness Insider's Ben Gilbert calling the purchase the latest "battleground" in theculture war between Democrats and Republicans.[328]Michael Hiltzik ofThe Seattle Times commented that Musk's impact on Twitter would depend on his policies and how he chooses to implement them.[329]David Auerbach ofUnHerd saw the purchase as indicative of a "major flashpoint" in the transition of society to "a more decentralized, chaotic, and devolved world".[330] Paul R. La Monica ofCNN Business suggested that Tesla's declining stock price indicated thatWall Street investors were doubtful on whether Musk's purchase would go through.[331]CleanTechnica's Matt Pressman believed that Musk's purchase would benefit Tesla because owners of the company's cars often engaged on the platform,[332] and Lindsey Bakes ofDeseret News wrote that Musk could integratecryptocurrency within Twitter.[333]
Kevin D. Williamson of American conservative magazineNational Review likened Musk's purchase of Twitter to theDonald Trump 2016 presidential campaign, labeling it apublicity stunt,[334] his colleagueRich Lowry said that liberal politicians' strong reaction to Musk's purchase was an indication that Twitter's existing policies had "political consequences",[335] and the editors of the publication wished Musk well in his quest to promote free speech on Twitter.[336] Bonnie Kristian of evangelical magazineChristianity Today felt that the purchase would only "add to the confusion" surrounding the contentious debate on free speech,[337] whileParis Marx ofAmerican socialist magazineJacobin dismissed Musk's proclamations that he sought to protect free speech as an "example of his hubris".[338] Corbin K. Barthold of conservative public policy magazineCity Journal believed it would be difficult but "worth the struggle" to end censorship on Twitter,[339] whilePeter van Buren ofThe Spectator World opined that Musk should simply take Twitter offline.[340]Cathy Young ofcenter-right news websiteThe Bulwark felt that Musk's planned reforms to Twitter were "unlikely to succeed", further observing that commentators who opposed the purchase viewed it as right-wing backlash against "perceived left-wing social media bias".[341]Robby Soave ofAmerican libertarian magazineReason postulated that Musk's purchase would not threaten Twitter or democracy, suggesting that those overstating the importance of the platform were "Musk's critics inprogressive andmainstream media",[342] with James McElroy ofThe American Conservative further arguing that many journalists' condemnation of the acquisition was motivated by "professional anxiety".[343]
Following Musk's announcement that he intended to terminate the agreement, legal experts generally agreed it would be difficult for him to do so.[355] Law professor James Park of theUniversity of California, Los Angeles found Musk's spambot argument weak and doubted it was material, whileCase Western Reserve University business law professor Anat Alon-Beck observed that Twitter was compelled to enforce the merger so as to disprove Musk's allegations. Professor Jennifer Grygiel ofSyracuse University mused that Musk may reverse course and revisit the deal.[356]Tulane University Law School associate dean for faculty research Ann Lipton andmergers and acquisitions expert Julian Klymochko both expressed doubts that Musk could prove there was a material adverse effect.[357][358]
Felix Salmon ofAxios noted that a clause in the contract opened the door for a judge to grantspecific performance and order Musk to move forward with the deal.[359] CNBC's Jonathan Vanian described Musk's withdrawal as the product of months ofbuyer's remorse,[360] while his colleague Alex Sherman observed that paying the stipulated breakup fee would not relieve Musk of compensations or sanctions.[361] Writing forThe Wall Street Journal,Holman W. Jenkins Jr. questioned whether Musk had proposed the acquisition "out of mouth momentum or excessive enjoyment of the limelight or for some mysterious reason that causes an onlooker to throw up his hands".[362] Various news publications believed that Zatko's complaint provided potential evidence in Musk's favor,[363][364][365] though Bloomberg News columnistMatt Levine argued that the complaint confirmed Twitter's monetizable daily active users counts do not include spambots.[366]
Greg Varallo of theBernstein Litowitz Berger & Grossmann law firm observed that if Musk failed to secure funding and close the acquisition, he could be barred from claiming that he can terminate the acquisition as per the legal doctrine ofjudicial estoppel.[367]New York University's Center for Social Media and Politics executive director Zeve Sanderson cautioned that if Musk were to lay off 75 percent of Twitter's workforce, it would make it more difficult for the company to moderate its content. Professor David Kaye of theUniversity of California, Irvine School of Law and ProfessorEric Goldman of theSanta Clara University School of Law concurred, warning of a potential increase in misinformation and harassment on the platform. However, they noted that the layoffs could still be mitigated through an increase in automated content moderation.[368]
Conservative commentators celebrated the purchase's closure.[294][297][369]Fox News hostTucker Carlson argued that Musk'slaissez-faire approach to moderation on Twitter would reshape American political discourse.[369] Shapiro wrote that he hoped other social media platforms would implement Musk's proposals and called on Musk to reverse Peterson's suspension from Twitter.[294][297][369] Political commentatorMatt Walsh saw the purchase as an opportunity to rally opposition against the "trans agenda".[197][369] Political columnistBenny Johnson called on Musk to reverse the suspensions of several prominent conservatives.[294]Spiked's O'Neill claimed that liberals' negative reaction to the closure reflected their fear of freedom and liberty,[370] whileWashington Examiner's Christopher Tremoglie disapproved of Musk's idea for a moderation council as continued censorship.[371]
Lauren Hirsch ofThe New York Times observed that Musk would face financial challenges in owning Twitter, including the company's difficulty in turning a profit.[372] Richard Waters of theFinancial Times echoed Hirsch's sentiments, adding that it would difficult for Musk to allow the right amount of free speech on the platform.[373] Kate Ferguson ofDeutsche Welle viewed Musk as unreliable and therefore unfit to operate Twitter,[374] and Hamilton Nolan ofThe Guardian felt the purchase was an attempt by Musk to "control the conversation".[375] Barbara Ortutay, Tom Krisher and Matt O'Brien of theAssociated Press noted Musk's contradictory and vague messages in the past regarding his vision for Twitter,[376] while Ben Burgis ofJacobin criticized liberals'technocratic views and their downplaying of the importance of free speech in response to the purchase, though he remarked that Musk had a history of suppressing his critics.[377] Also writing forThe New York Times,Kate Conger,Ryan Mac, and Tiffany Hsu noted that Musk's meetings with civil rights activists and his plans for a content moderation council were reminiscent of the actions taken by Zuckerberg following backlash on Facebook's handling of the2016 U.S. elections.[378]Politico'sJack Shafer noted that media coverage of Musk's purchase foretold "chaos, greater political oversight, and outright failure."[379]
Edward Niedermeyer, an author and critic of Musk, argued that Twitter may fail due to Musk's hubris.[379] Scholars who studied theFirst Amendment, such as professorJonathan Turley of theGeorge Washington University Law School, praised Musk's plans to tone down content moderation on Twitter.[304] New York University's Center for Business and Human Rights deputy director Paul M. Barrett speculated that a moderation council under Musk would face skepticism due to Musk's "erratic and imperious" behavior in the past.[197]Alex Stamos ofStanford University'sCenter for International Security and Cooperation questioned how Musk would respond to foreign governments attempting to influence Twitter's userbase.[197] Those in the cryptocurrency field, such as podcaster Bryce Paul and investorCathie Wood, expressed excitement at the prospects of Musk's ownership.[304]
Media Matters for America president Angela Carusone warned that Musk's leadership would lead to an increase in disinformation, conspiracy theories, and harassment on Twitter.[380] Literary groupPEN America opined that the midterm elections in November would serve as a test as to whether Musk would allow disinformation to spread rapidly on the platform,[381] while American left-wing activist coalition Stop the Deal warned of real-world consequences if a rise in hate speech occurs on Twitter.[300][197] Over 40 civil rights groups signed an open letter to 20 Twitter advertisers urging them to abandon the platform if Musk lifts its content moderation measures.[185] Anti-Defamation League CEOJonathan Greenblatt said he was "cautiously optimistic" about the purchase, but expressed concerns over a potential rise in hate speech.[380]Fight for the Future directorEvan Greer appreciated Musk's idea for a moderation council, but noted that Musk had supreme authority on any decisions made.[194]Eliot Higgins ofBellingcat believed that Musk's attempts to promote free speech would backfire under increased government regulation.[293] LGBTQ+ advocacy groupHuman Rights Campaign voiced concern at Twitter's new ownership and argued that Twitter has the responsibility to stop its platform from turning into a "dangerous media environment".[197] The Guardian has also suspended submissions to X due to a number of far-right conspiracy theories and posts promoting racism.[382]
On the first anniversary of the acquisition, Musk valued the company at $19 billion, a 55 percent decrease from the buyout's $44 billion purchase price.[383][384]Fidelity, which contributed $300 million to the acquisition, depressed the value by 65 percent.[385] Statistics indicated a 30 percent decline in active users, 60 percent decline in advertising,[386] 14 percent decline in website traffic,[387] and 38 percent decline in app downloads.[388] The company has denied this, claiming an increase in engagement.[387] Anonfiction book about the acquisition,Breaking Twitter: Elon Musk and the Most Controversial Corporate Takeover in History, was announced by authorBen Mezrich in December 2022 and released in November 2023.[389][390]
Many publications reflected on Twitter's first year under Musk's ownership. Journalists forThe Washington Post, citing data from theUniversity of Washington, wrote that the platform had "become a cacophony of misinformation and confusing reports", remarking on Twitter's stark shift toward conservatism.[391] Pranav Dixit ofThe Guardian lambasted the changes and reforms Musk had instituted in the past year,[392] while Miles Klee ofRolling Stone criticized Musk's alleged pandering to "right-wing extremists and peddlers of misinformation".[393]The Verge's Jay Peters pointed to Musk's radical changes and declining user numbers as evidence that the takeover was a "disaster",[394] while Bloomberg's Aisha Counts zeroed in on the increase in misinformation and hate speech.[395] Kate Conger ofThe New York Times and Alex Kirshner ofSlate lamented that Musk's acquisition had fundamentally changed the meaning of Twitter.[396][397] Annika Burgess of theAustralian Broadcasting Corporation declared, "Twitter as the world knew it is dead".[398] Musk has largely dismissed this negative commentary.[399][400][401]
The Wall Street Journal opined in 2024 that the $13 billion Musk had borrowed to buy Twitter was "the worst merger-finance deal for banks" since the2008 financial crisis, adding that the "allure" of banking Musk had proved "too attractive to pass up".[402]The Washington Post reported that the company had lost $24 billion in equity value, "a vaporization of wealth that has little parallel outside the realm of economic or industry-specific crashes, or devastating corporate scandals."[403]
^Murphy, Hannah; McGee, Patrick; Fontanella-Khan, James; Indap, Sujeet (October 30, 2022)."Elon Musk moves quickly to shake up Twitter with plans for job cuts".Financial Times.ISSN0307-1766.Archived from the original on October 30, 2022. RetrievedJanuary 27, 2023.In this instance, Musk's argument is that Twitter has been mismanaged and that if it were not for his bid, the value of the company's stock would have collapsed, one of the people said. The executives, according to a person familiar with their thinking, are weighing their legal options over the decision. Denying severance payments related to acquisitions is unusual and the "for cause" clause typically requires misconduct to have taken place.
Schiffer, Zoe; Newton, Casey; Heath, Alex (January 17, 2023)."Extremely Hardcore".The Verge.Archived from the original on January 17, 2023. RetrievedJanuary 18, 2023.
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