Dogecoin Spikes 11% As Elon Musk Offers To Buy Twitter

April 15, 2022 2:07 pm

Elon Musk is known for his interest in the cryptocurrency industry and has often celebrated the use of the meme coin Dogecoin as a method of payment.

This past week, Dogecoin has reportedly spiked in price as it was revealed that Elon Musk has made an offer to buy Twitter at $54.20 a share for a total of $43 billion in cash.

The news comes after Musk had acquired roughly 9% of Twitter stock allowing him to join Twitter’s board of directors.

Emails reveal that Musk plans to take the company private in order to “go through the changes that need to made” which has sparked a lot of investor interest.

Many believe the changes that he is referring to includes more crypto integration within Twitter which may include Dogecoin and other cryptocurrencies.

CoinDesk reports:

The offer of $54.20 a share is a 38% premium over the price of the stock the day before Musk’s investment in the company was made public earlier this month, according to a filing with the U.S. Securities and Exchange Commission.

Musk plans to take the company private in order to “go through the changes that need to be made,” he wrote in a text to Twitter Chairman Bret Taylor replicated in the filing.

In late March, Musk criticized the social media platform for failing to adhere to principles of free speech, saying that it serves as “de facto public town square” and this failure therefore undermines democracy.

“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,” Musk stated.

Twitter shares surged by around 12% after announcement along with Dogecoin continually increasing at the same time.

Musk mentioned that this offer would be his final offer and would supposedly reconsider his position as a shareholder if his offer is rejected.

So far, the meme coin is up 5% in just the past 24 hours as Twitter has also previously established itself to be a platform that is open to embracing crypto by adding features such as being able to send tips to users in Bitcoin last September.

Past deleted Twitter posts from Musk indicate that there may be some plans to use Dogecoin pay for Twitter Blue which is a premium service offered by the company.

Currently, Twitter is supposedly receiving advisory services from Goldman Sachs to evaluate Elon Musk’s offer.

NYTimes reports:

The board reviews the offer. The board will work with its advisers at Goldman Sachs to review Mr. Musk’s offer. They will have to consider, among other things, whether the deal fairly values the company, and whether Mr. Musk has the financing to cobble together a deal.

The board cannot simply decide it does not like Mr. Musk as a suitor, but they can “come up with reasons why they don’t like the bid,” like, for example, his ability to fund it, said Steven Davidoff Solomon, a professor at the School of Law at the University of California, Berkeley.

The board announces its decision. The board will likely take up to a few days to review the offer.

What happens here could be a pivotal turning point for both Twitter and the crypto industry as the plan to potentially take Twitter private indicates big changes.

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