The price of Dogecoin shot up nearly 40 percent after Elon Musk, who has famously promoted the joke cryptocurrency on his Twitter, finalized a deal to buy the social media company for $44 billion in cash.
The so-called ‘meme coin’ rose to 16.7 cents after the purchase was announced Monday afternoon, up from 12 cents that morning. Musk had previously floated the idea that users could pay for Twitter’s premium service with the coin.
It is worth about 15 cents as of Tuesday morning. The cryptocurrency was created as a ‘joke’ in 2013. Its mascot is a Shiba Inu dog.
It was valued at less than one cent at the start of 2021, until the SpaceX founder and others started promoting it on social media, hyping it up and driving up the price.
The billionaire’s mere mention of the coin caused it to fluctuate. It plunged when he joked about it on air on Saturday Night Live last May. In December, it went up when he said Tesla would accept the coin as payment for merchandise.
Meanwhile, stocks for Twitter and Tesla were down Tuesday morning. Tesla was down 6.68 percent, while Twitter was trading at 1.45 percent lower than its closing position the day before, as experts worried that Musk’s ‘free speech absolutist’ beliefs would clash with the company’s advertiser-based business model.
‘Joke’ cryptocurrency Dogecoin went up by nearly 40 percent after Elon Musk finalized a deal to buy Twitter for $44 billion in cash
Musk has repeatedly promoted the cryptocurrency on his social media and on TV appearances, coinciding with a rise in interest in the ‘meme coin’ last year
Last May, Musk played a financial expert trying to explain crypto on SNL’s Weekend Update. He jokingly admitted that Dogecoin was a ‘hustle,’ sending the price down 22 percent
Dogecoin stock went up by more than 15 percent after Musk tweeted that his electric car company, Tesla, will accept Dogecoin for merchandise
Twitter stocks were down Tuesday morning, as experts worried that Musk’s ‘free speech absolutism’ would clash with the company’s advertiser-based model
Shares of electric car maker Tesla were also down on Tuesday, by nearly 7 percent
Musk and Twitter reached a deal shortly before 3pm Monday afternoon.
The Tesla magnate agreed to pay shareholders $54.20 in cash for each share of common stock before the bombshell deal was struck.
The move shifts control of the social media platform populated by millions of users and global leaders to the world’s richest person.
Musk vowed to protect free speech on Twitter, ‘defeat the spam bots’ and ‘authenticate all humans’ as he welcomed the acquisition.
He previously proposed a series of changes to the company’s fledgling premium service.
‘Everyone who signs up for Twitter Blue (ie pays $3/month) should get an authentication checkmark,’ he tweeted.
‘Price should probably be ~$2/month, but paid 12 months up front & account doesn’t get checkmark for 60 days (watch for CC chargebacks) & suspended with no refund if used for scam/spam,’ he said.
‘And no ads. The power of corporations to dictate policy is greatly enhanced if Twitter depends on advertising money to survive,’ he added.
‘Maybe even an option to pay in Doge?’
Some Twitter users are worried about the future of the company at the hands of Musk, who is known to use the platform to post inflammatory messages and tease his followers, sometimes with the idea of using Dogecoin legitimately.
In January, he tweeted: ‘Tesla merch buyable with Dogecoin.’
The stock went up by more than 15 percent that same day, CNBC reports.
Last May, Musk played a financial expert trying to explain crypto on SNL’s Weekend Update segment.
‘They’re a type of digital money but instead of being controlled by a central Government, they’re decentralized using blockchain technology,’ he explained, letting out a nervous giggle.
In a bit about how difficult it is to explain, the segment’s host repeatedly asked him, ‘What is dogecoin?’
‘I keep telling you, it’s a cryptocurrency you can trade for conventional money.’
Dogecoin creator Billy Markus admitted last year that he created the coin as a joke, and that it was ‘amusing’ to see Elon Musk promoting it
‘Oh, so it’s a hustle,’ Michael Che finally said.
‘Yeah, it’s a hustle,’ Musk replied.
The stock dived by 22 percent while the show was airing.
Dogecoin creator Billy Markus told Bloomberg last year that he invented the coin as a joke.
The coin was being traded a lot early last year, reaching a high of 64 cents in May, months after amateur investors managed to send shares of video game retailer GameStop soaring.
Markus cashed in his Dogecoin and abandoned his pet project in 2015.
‘I’m half detached, but it’s weird that something I made in a few hours is now part of internet culture,’ he said. ‘It’s amusing to see Elon Musk talk about it. It feels silly, but there’s this huge upwelling behind it.’
Tuesday’s slump notwithstanding, Twitter stock is up by more than 9 percent since April 19, when Musk made his offer to buy the company entirely. Tesla shares, meanwhile, fell by about 0.7 percent in the same time.
Twitter stock is up by more than 9 percent since April 19, when Musk made his offer to buy the company entirely
A New York Times reporter says that an unidentified Twitter employee told him they feel like ‘throwing up’ at the thought of working for Musk
Inside Twitter, employees are reportedly dismayed at the realization that Musk is now their boss.
‘I feel like im going to throw up..I rly don’t wanna work for a company that is owned by Elon Musk,’ one employee told a New York Times reporter.
Some raised concerns about whether Musk, a staunch opponent of labor unions who is worth a reported $266 billion, would push the price of shares down as he seeks to take the company private, hitting employees who are partly paid in stock especially hard.
The unidentified Twitter employee added: ‘I don’t rly know what I’m supposed to do…oh my god, my phone’s been blowing up…We have a meeting about it at 5pm…the CEO is going to address everyone about it
‘I hate him, why does he even want this?
‘I feel like he’s this petulant little boy and that he’s doing this to troll…he doesn’t know anything about our policies and what we do…his statement about our algo was f****** insane…
‘Were just gonna let everyone run amok?…nobody knows.’
Earlier, the 50-year-old tycoon called for his ‘worst critics’ to remain on the platform because ‘that is what free speech means.’
Still, employees are worried about the SpaceX founder’s plans for the company.
Twitter CEO Parag Agrawal (left) on Monday spoke to employees to try and reassure them. Co-founder Jack Dorsey (right) holds a board seat, but is expected to give it up in May
Musk is known for using Twitter to post inflammatory messages, much like former President Donald Trump.
Parag Agrawal, the CEO, said on Monday that it was up to Musk to decide whether to readmit Trump.
Trump on Monday said he would not be rejoining the site if Musk allowed him to – instead saying he would continue to use his own TRUTH Social.
Some experts are pointing to a tough road ahead for Twitter if Musk, who calls himself a free speech absolutist, gets his way.
‘We expect advertisers will be less willing to spend on Twitter if Elon Musk removes content moderation in order to promote free speech,’ MoffettNathanson analyst Michael Nathanson said.
The 16-year old company, which has emerged as one of the world’s most influential online public squares with about over 200 million users, reported $4.51 billion in ad revenue for 2021, accounting for about 89% of its overall sales.
‘The challenge (for Twitter) will be maintaining and building revenue given that the controversial opinions (Musk) hopes to give more of a free rein to are often unpalatable to advertisers,’ Hargreaves Lansdown analyst Susannah Streeter said.
Tesla tycoon versus Big Tech: How swashbuckling billionaire Elon Musk fought off ‘poison pill’, lawsuits and hostile board of directors before $44bn Twitter takeover
It has been one of the most dramatic takeover attempts in history, seeing a swashbuckling billionaire pitted against one of the largest tech giants in the world.
But Elon Musk’s seizing of Twitter has been a months-long pursuit that has seen him send shockwaves through the world of business.
The Tesla magnate started hoarding shares in the social media firm at the start of the year in an apparent bid to preserve free speech online.
He quickly rocketed to the top of its shareholders’ list, acquiring a huge 9% stake in the tech giant.
But then he hit choppy waters, accepting a place on the board then rejecting it, getting embroiled in lawsuits and seeing rival companies circle to buy Twitter.
Meanwhile bosses at the social media firm appeared to do all they could to ensure he could not not seize it – even launching a ‘poison pill’ strategy to sink his chances.
Yet Musk brazenly blasted through all the obstacles, punting a $43 billion offer earlier this month and showing how he would finance it.
The two sides were reportedly working into the early morning on Monday to finalize the ‘fast-moving’ negotiations.
It saw Twitter shares in the US soar by four percent as the markets opened to $50.84 a share.
On Monday, Musk called for his ‘worst critics’ to remain on the platform because ‘that is what free speech means’.
Here, DailyMail.com looks at the rollercoaster journey he has been on over the last few months as he seizes his prize.
The Tesla magnate started hoarding shares in the social media firm at the start of the year in an apparent bid to preserve free speech online
January 31: Musk hoards Twitter shares and buys them ‘almost daily’
Musk started buying Twitter stock on January 31 and continued to buy shares during every trading session through April 1, according to an SEC filing.
Just days earlier, he told his 80 million followers on the site he was ‘ giving serious thought ‘ to creating his own social media platform.
A user asked him: ‘Would you consider building a new social media platform, @elonmusk?
‘One that would consist an open source algorithm, one where free speech and adhering to free speech is given top priority, one where propaganda is very minimal. I think that kind of a platform is needed.’
The Tesla and SpaceX CEO replied through his official account: ‘Am giving serious thought to this.’
The billionaire businessman, 50, appeared to be suggesting he was sick of Twitter over the right to freedom of speech.
April 4: Musk says he bought 9.2 percent stake in firm a month earlier
Musk revealed he had purchased a 9.2 percent stake in the social media giant on March 14.
He tweeted ‘oh hi lol’ after the news sent shockwaves through the business world and across social media. He added: ‘Do you want an edit button?’
April 5: He joins Twitter’s board of directors – sees share price rocket
Twitter said the tech tycoon was joining the company’s board of directors, causing the social media platform’s shares to rise over 7 per cent in premarket trading.
It led to speculation he would try to address what he called the platform’s ‘failure to adhere to free speech principles’ and ‘fundamentally undermine democracy’.
Under the terms of the agreement, Musk would have served on the board until the company’s 2024 annual shareholders meeting.
As long as he remains a director, the agreement said, he could not won more than 14.9 percent of the company’s stock.
It meant he would not have been able to take over the company until well after his term on the board was over.
The firm said: ‘Twitter is committed to impartiality in the development and enforcement of its policies and rules.
‘Our policy decisions are not determined by the Board or shareholders, and we have no plans to reverse any policy decisions.’
‘As always our Board plays an important advisory and feedback role across the entirety of our service.
‘Our day to day operations and decisions are made by Twitter management and employees.’
April 8: Asset managers take over Musk as largest shareholders
Asset manager Vanguard Group increased its stake to overtake Musk as the largest shareholder.
Vanguard owned 10.3 percent of Twitter, while the Tesla tycoon owned 9.1 per cent, making him the largest individual shareholder.
Vanguard, led by CEO Tim Buckley, increased its stake in the company at some point during the first quarter, according to SEC filings made on April 8.
It previously reported owning 67.2million shares of Twitter or about 8.4 per cent of the company as of the end of December, according to FactSet.
Other owners of large quantities of Twitter stock included Morgan Stanley, Fidelity and Black Rock.
Vanguard, led by CEO Tim Buckley, increased its stake in the company at some point during the first quarter, according to SEC filings made on April 8
April 9: Musk rejects the offer to join Twitter’s board of directors
Musk rejected an offer to join Twitter’s board after disclosing his stake in the company.
Analysts said the move signaled his intention to take over the company as a board seat would have limited his stake to just under 15 per cent.
Parag Agrawal said the board would still ‘remain open’ to Musk’s input, but warned: ‘There will be distractions ahead but our goals and priorities remain unchanged.’
He said: ‘The board and I had many discussions about Elon joining the board, and with Elon directly. We were excited to collaborate and clear about the risks.
‘We also believed that having Elon as a fiduciary of the company where he, like all board members, has to act in the best interests of the company and all our shareholders, was the best path forward. The board offered him a seat.’
Agrawal continued: ‘We announced on Tuesday that Elon would be appointed to the board contingent on a background check and formal acceptance.
‘Elon’s appointment to the board was to become officially effective 4/9, but Elon shared that same morning that he will no longer be joining the board.’
Parag Agrawal said the board would still ‘remain open’ to Musk’s input, but warned: ‘There will be distractions ahead but our goals and priorities remain unchanged’
April 12: Twitter shareholder Marc Bain Rasella files suit against Musk
Marc Bain Rasella filed a lawsuit against Musk for alleged securities fraud at a Manhattan federal court, according to a Bloomberg report.
The suit claimed the billionaire was required to disclose his holdings to the SEC by March 24, but the delay kept Twitter’s share price down allowing Musk to buy more.
Musk was accused of violating a regulatory deadline to reveal he had accumulated a stake of at least five per cent.
Instead, according to the complaint, Musk did not disclose his position in Twitter until he had almost doubled his stake to more than nine per cent.
That strategy, the lawsuit alleges, hurt less wealthy investors who sold shares in the company in the nearly two weeks before Musk acknowledged holding a major stake.
April 14: The Tesla tycoon offers to buy Twitter for $43 BILLION
Musk offered to buy Twitter for $43billion, a regulatory filing showed, as he moved to seize the social media giant.
Musk’s offer price of $54.20 per share represented a 38 per cent premium to the closing price of Twitter’s stock on April 1.
This was the last trading day before the Tesla CEO’s over nine per cent investment in the company was publicly announced.
It even appeared to reference marijuana – also known as 420 – a common reference used by Musk on Twitter.
Twitter said in a regulatory filing Musk provided a letter containing a proposal to buy the remaining shares of Twitter he did not already own.
April 15: Twitter launches ‘poison pill’ strategy to stop Musk buyout
Twitter’s board announced a dramatic poison pill plan to prevent Musk from increasing his stake in the company.
Also known as a shareholder rights provision, the plan would trigger a dilution of shares if any shareholder builds up a 15 per cent stake without the board’s approval.
The plan did not prevent Twitter from accepting Musk’s offer or entering negotiations with him or other potential buyers.
But it did stop the billionaire from putting pressure on the board by buying up ever more shares on the open market.
Musk hit back with a laughing emoji to a version of the classic ‘Distracted Boyfriend’ meme mocking Twitter’s board.
The imaged depicted ‘Twitter’s board’ looking wistfully at the option to ‘keep that easy gig that gives me shares’ as ‘Twitter investors’ look on with disgust.
Twitter’s board is led by chairman Bret Taylor, who is also the co-CEO of business software giant Salesforce
April 16: Musk tweets Love Me Tender in tease of hostile takeover
Musk tweeted ‘Love Me Tender’ as he again teased at the possibility of a hostile takeover of Twitter.
The billionaire posted the Elvis Presley lyrics in a potential bid to lure shareholders with a tender offer that could see him seize control.
A tender offer would see him bypass the board and go to shareholders with his offer of $54.20 a share – but he would need to show how he would finance his bid.
He also appeared to suggest he would strip board members of their salaries, saying they would get ‘$0 if my bid succeeds’.
April 18: Jack Dorsey slams the Twitter board for ‘plots and coups’
Jack Dorsey slammed the board of Twitter as he weighed into the toxic fight over Elon Musk’s attempted hostile takeover for the first time.
The former CEO, who is still a member of the board himself, blasted the ‘plots and coups’ that were ‘consistently the dysfunction of the company’.
In a series of bombshell tweets and replies, he endorsed one posting saying that ‘a bad board will kill a company every time’.
Replying to one post, he said: ‘When I was fired in 2008 and made chair, the board took most of my shares away from me.
‘I also gave 1 per cent of the company back to the employee pool in 2015. So, ended up with very little of company.’
He also replied to one comment mentioning ‘plots and coups’ in the Twitter board saying: ‘it’s consistently been the dysfunction of the company’.
Earlier in the thread, he replied to a post quoting a ‘Silicon Valley proverb’ by venture capitalist Fred Destin.
It said: ‘Good boards don’t create good companies, but a bad board will kill a company every time.’ Dorsey said: ‘Big facts.’
Former CEO Dorsey slammed Twitter’s board of directors on as he replied to a series of unfriendly tweets
April 21: SpaceX boss unveils his $46.5billion financing package
Elon Musk unveiled his $46.5billion financing package to fund his takeover of Twitter – using Tesla as collateral.
The world’s richest man filed documents with the Securities and Exchange Commission outlining how he would seize the social media giant.
He committed $21billion in equity, $13billion from Morgan Stanley in debt facilities and another $12.5billion from the bank and others in margin loans.
But ‘a portion’ of his shares in Tesla have been put forward as collateral, which analysts feared could have a huge impact on the firm.
The 50-year-old billionaire also revealed he was weighing up launching a tender offer for Twitter after the company ignored his acquisition offer.
He said he was exploring getting stocks directly from shareholders but admitted he ‘has not determined whether to do so at this time’.
Musk filed the document with the SEC showing how he planned to take over Twitter for about $46.5billion.
He secured a debt commitment letter from Morgan Stanley Senior Funding to the tune of $13billion in financing.
This was made up of a loan of $6.5billion, a senior secured revolving facility for $500million, a bridge loan of up to $3billion and an unsecured bridge loan for up to $3billion.
He also got a margin loan commitment letter from Morgan Stanley for $12.5 billion in margin loans. And Musk also got $21billion through equity financing.
But he has used ‘a portion’ of his shares in Tesla as collateral in the high-stakes move, which analysts warned could have huge ramifications for the company.
April 22: Musk posts ‘boner’ killer picture of Bill Gates on Twitter
Musk dissed Bill Gates’ gut on Twitter, posting a photo of the Microsoft mogul next to Apple’s controversial pregnant man emoji ‘in case you need to lose a boner.’
He posted a follow-up image in response to the Friday post of six hooded figured captioned ‘shadow ban council reviewing Tweet’.
The joke could further infuriate woke Twitter staffers angered by Musk’s ongoing bid to buy the firm after saying he would support free speech.
That is because the pregnant man emoji is aimed at being inclusive to transgender people – with Musk frequently taking aim at what he sees as woke overreach.
April 25: Musk finalizes deal to buy Twitter
Musk was closing in on seizing Twitter as talks between the Tesla magnate and the tech giant entered their final stages, reports say.
The tycoon’s representatives were said to be hammering out terms including a timeline and fees if an agreement was signed and then fell apart.
The two sides were reportedly working into the early morning to finalize the ‘fluid and fast-moving’ negotiations.
Twitter shares soared by four percent as the markets opened to $50.84 a share amid reports it would be seized by Musk.
On Monday afternoon, Twitter announced it had ‘entered into a definitive agreement to be acquired by an entity wholly owned by Elon Musk, for $54.20 per share in cash in a transaction valued at approximately $44 billion. Upon completion of the transaction, Twitter will become a privately held company.’