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Elon Musk takes the next big step toward buying Twitter: “Will defeat the Spam Bots Or Die trying!”

Bloomberg reports that Tesla CEO Elon Musk has set up a number of new holding companies. The new business structures might assist in his Twitter proposal if it is implemented. Those that follow Musk’s lead will be expecting more from the new firm when it is formed. According to Bloomberg, the word “X holding” appears in the titles of every new company. The letter “X” is a favorite of Elon Musk. In addition, there is the Tesla Model X (TSLA) and SpaceX, the reusable rocket firm founded by Elon Musk.

SpaceX, Tesla, and The Boring Company may be excellent for Musk bulls if he gives part of his private money to a new corporate entity. Musk’s whole business may be represented by that organization, which could one day be listed on the stock exchange. As Bloomberg pointed out, all of the new firms he named are definitely a part of his effort to acquire Twitter (TWTR). A “new business [may be] integrated with [Twitter],” according to accounting expert Robert Willens.”

When it comes to LBOs, he says this is how most are done. Musk, for example, might create new corporate vehicles to obtain more cash from private equity firms or wealthy partners, as a means of raising additional capital. Wow, that’s a long term. According to Willens, the former shareholders of the company created to execute the LBO retained small ownership in the new company. Some Twitter stockholders may be allowed to acquire private shares in the newly established entity that purchases Twitter if Musk follows Musk’s example this time.

Certain stockholders may be allowed to hold on to their shares even while Musk seeks to revamp the firm. Tesla investors have heard of a “X” holding company before. The notion reappeared at the end of 2021, the most current time.

A Twitter share price of $47.7 was up only 0.7% in late afternoon trading. Both the S&P 500 and the Dow Jones Industrial Average were down by a total of 1.5% and 1%, respectively, in the wake of the financial crisis. The current price of Twitter is a far way from the offer made by Elon Musk.

While seeking to acquire Twitter, Musk has conducted an all-out fight against spambots, threatening to shut them down or “die trying” in the event of a failure. Elon Musk, CEO of Tesla, declared in a series of tweets that he would verify all “genuine” Twitter accounts as well.

In a recent talk at TED Vancouver, Elon Musk discussed the same problem, describing instances when he came across many bots enticing people to invest in cryptocurrencies. Tesla CEO Elon Musk has previously said that the eradication of “bot armies” is his “top priority,” and that the removal of crypto fraud on Twitter would have given him 100 billion Dogecoins by now.

Now that the purchase has been agreed upon, Musk has begun the process of forming a legal corporation in order to make it a reality. For Musk, the most important businesses are Tesla, the Boring Company, Neuralink Biotech, and SpaceX, the latter of which he founded in order to conduct space exploration.

There has never been a parent firm for any of the four. Only Tesla is traded on the stock market. It’s possible, however, that Musk’s announcement of new holding entities in an SEC filing on April 22 may alter that. Holding companies enable Musk and his partners to employ a subsidiary that will ultimately combine with Twitter. It far, no one has been able to tell for sure whether or not Tesla CEO Elon Musk is capable of a successful takeover of any company, but now he seems to be able to do so.

Is there any chance of this working?

Several elements will determine if Musk’s attempt to acquire Twitter via the creation of three holding companies, each with a different variant of the moniker “X,” is successful.

It doesn’t matter whether the board likes or dislikes Musk as a possible owner; they are legally obligated to examine all proposals presented before them. An “updated, nonbinding plan” Musk gave to the board contains his new financial information, according to a statement from Twitter. Board members pledged to “perform a thorough, comprehensive, and thoughtful assessment” to decide the best course of action for Twitter and its investors, according to a statement.

Source: TheStreet

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Written by Alex Bruno

Freelance space writer Alex Bruno specializes in covering China's quickly expanding space industry. In 2021, he started writing for SpaceXMania. He also contributes to publications including SpaceNews, IEEE Spectrum, National Geographic, Sky & Telescope, and New Scientist. When Alex was a small child, he first experienced the space bug after seeing Voyager photographs of alien planets in our solar system. When not in space, Alex likes to go trail jogging in the Finnish countryside.

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