In early 2022, Elon Musk began quietly accumulating shares of Twitter, Inc., a company he had long criticized. By April 4, he disclosed a 9.1 percent stake, making him the platform’s largest shareholder.
The move was not initially framed as a takeover attempt. Twitter’s board responded by offering Musk a seat on the board, which he initially accepted before declining. By April 14, Musk had made an unsolicited offer to purchase the entire company.
The board adopted a “poison pill” strategy to prevent a hostile takeover, but abandoned it within days. On April 25, the board unanimously accepted Musk’s $44 billion buyout offer.
Musk had been an active Twitter user for years, using the platform to announce company news, attack critics, and promote his businesses. He frequently complained about Twitter’s content moderation policies, arguing they stifled free speech, and claimed the platform was overrun with spam bots. These criticisms formed his public rationale for the acquisition.
He promised to open-source the algorithms, defeat bot armies, and build an “everything app” called X. The deal nearly collapsed in July 2022 when Musk announced he was terminating the agreement, citing Twitter’s failure to address spambot accounts as a breach of terms.
Twitter disputed this claim and sued Musk in the Delaware Court of Chancery, with a trial scheduled for October 17, 2022. The lawsuit never reached trial. The acquisition closed on October 27, 2022, with Musk taking control at the same $44 billion price.
The takeover represented more than a business transaction. It was the culmination of a long-running conflict between Musk and a platform that had attempted content moderation.
Musk had positioned himself as a free-speech absolutist, criticizing Twitter’s bans and suspensions. His purchase gave him unilateral power to implement changes. The poison pill strategy demonstrated how seriously the board viewed the threat. Such defensive measures are rare and used only when a board considers a buyer genuinely hostile.
The board’s rapid shift from resistance to acceptance within two weeks highlighted how quickly the situation evolved. Musk’s promises for the platform were specific but sometimes contradictory.
Free speech and spam control do not always align. Open-source code and proprietary business models present challenges. The “everything app” vision suggested Musk saw Twitter as a foundation for payments, messaging, and commerce—a long-term bet.
The Delaware lawsuit nearly derailed the deal but ultimately became a sideshow. The acquisition proceeded, and Musk took control.
By the following Friday, he had fired top executives. Within a week, he dissolved the board. The changes were swift and direct, matching months of signaling.
The platform that hosted the deal’s public drama now belonged to its loudest critic.
