By buying the social network Twitter for more than 44 billion dollars, Elon Musk has once again played a role in risky markets. Indeed, the formalization of the operation had a very positive impact on the Twitter share price but also on the price of Dogecoin!
Elon Musk buys Twitter for $44 billion
Yesterday evening, the announcement became official: Elon Musk became the owner of the social network Twitter. However, the case was far from being settled in advance. About ten days ago, the board of directors of the blue bird had also fiercely opposed the takeover of the entity by the American billionaire, CEO of Tesla and SpaceX.
But on Sunday, information of a meeting between Musk’s entourage and company representatives had leaked. The hypothesis of a takeover, deemed unlikely until recently, has therefore become plausible in less than 24 hours.
The case concludes on Monday between the two parties and agrees on a buyback of the shares of the social network, at a price of $ 54.20 per unit. An operation which then values the takeover for more than 44 billion dollars. To finalize the operation, Elon Musk will pay 21 billion dollars from his pocket.
Morgan Stanley Bank, an 8% shareholder in Twitter, has for its part committed to allocating two loans to the American billionaire. For respective amounts of 13 and 12.5 billion dollars. Negotiations between Musk and Twitter could continue throughout the week, on topics other than price.
Following this takeover, Elon Musk once again said he was ready to “find a solution to the problems of freedom of expression” posed by this takeover. The American billionaire has also made it known that he wants to make Twitter “the platform for freedom of expression in the world”.
Twitter more “Doge friendly” with Musk in charge?
When we know Elon Musk’s appetite for Dogecoin, the announcement of the takeover of Twitter could have positive consequences for the token. In any case, this is the wish of many Dogecoin fans who hope that the social network will become more “ doge-friendly ” with Musk at the helm. The American billionaire has never hidden his interest in the token meme, even calling it a more suitable means of payment than Bitcoin on several occasions.
Remember that a few months ago, the social network had already made it possible to pay tips in Bitcoin and then in Ethereum. With Elon Musk at the helm, there is a good chance that this functionality will also be extended to Dogecoin. And why not to other digital assets like the Shiba Inu, of which the American billionaire is also very fond.
What impact on the price of Dogecoin?
The official announcement of the takeover of Twitter by Elon Musk obviously had consequences on several financial assets such as Twitter action. During the day’s session, the asset appreciated by 5.66%.
On the digital asset side, Dogecoin was also largely impacted by the announcement. In the space of a few hours, the price of Dogecoin appreciated by more than 23%. At the time of writing, one DOGE is trading for $0.1637. The graph below illustrates the evolution of the price of Dogecoin over the last 24 hours:
Is it the best time to buy Dogecoin ? This may actually be a good idea since the price could continue to climb if Musk were to make other positive announcements.
For its part, Tesla shares had a more difficult session. The title lost 0.70% over the day and underperformed the American stock market indices such as the NASDAQ or the S&P 500, which are showing their sides slightly in the green.