Impossible has become a reality. Musk bought Twitter.

Almost nobody would guess that Musk will really be able to buy an American social network. He eventually reached an agreement with the company worth $ 54.20 per share or $ 44 billion in cash. Are investors worried, or is this good news? The opinions of the experts differ, at least the ownership of the social network in the hands of the visionary is considered controversial and may have a more significant impact on the overall development of this segment.

Despite the unexpected acquisition, Musk received support from former Twitter CEO and founder Jack Dorsey. The new owner has a clear plan to create a platform that is credible and widely inclusive. The question is whether this is not just propaganda, and whether the founder of Tesla will not only pursue his own interests. Much speculation suggests that the exclusivity of the platform could also be dependant on its charging. If this happens, there could be an immediate outflow of users who move to another location. However, no one knows what the whole direct impact of the acquisition will be on Twitter, if we speak about shareholders or employees. Some believe in Musk and are happy after the announcement, while others are concerned. Twitter shares have risen since the announcement, with an increase around 6% over the past week. *

Twitter Inc stock performance over the last 5 years. (Source: www.investing.com) *

After the acquisition, investors should receive $ 54.20 for each share of the company. The value of the shares is 38% higher than on April 1, the last working day before the visionary began his journey with the social network and disclosed ownership of a significant stake in the company, which subsequently led to an increase in shares.

The agreement should probably be concluded until 3 to 6 months. Questions also arise about how Musk wants to finance the buyout. However, the owner of Tesla is trying to dispel any doubts and revealed that he has liabilities for loans from several banks. The financing could therefore also be through bank loans of about $ 13 billion, another $ 12.5 billion should be available thanks to a stake in Tesla. He said that another $ 21 billion should be provided in cash, but the source of the money is unknown.

After taking control of the social network, Musk will not only be fabulously rich, but his influence and power will grow to enormous proportions. However, Twitter in a sense, as an investment can be risky, we need to take into account the human factor that is typical for social network, and here the new owner is a novice.

An interesting gap in the market is emerging for investors today. These days Twitter shares are moving downwards, below $ 50, which could be an interesting opportunity considering that Musk's redemption will be priced at $ 54.20. [1]

* Past performance is no guarantee for future results. 

[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.