Twitter has confirmed that it has agreed to sell itself to Elon Musk for $44 billion in a transaction that may expand the billionaire’s commercial empire and place him in command of one of the world’s most influential social networks. In little than a month, the Tesla and SpaceX CEO became one of Twitter’s largest shareholders, was offered and turned down a position on its Board of Directors, and bid to buy the firm. The article is about Elon Musk Set To Buy Twitter in $44bn Deal.
Shareholders would receive $54.20 in cash for each share of Twitter stock they own under the terms of the agreement, which matches Musk’s original offer and represents a 38 percent premium over the stock price the day before Musk declared his position in the firm.
“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated. Twitter has tremendous potential, so I look forward to working with the company and the community of users to unlock it”, Mr. Musk said.
Twitter’s board of directors unanimously authorized the purchase, which is scheduled to close in 2022. Elon Musk stated that he had secured $46.5 billion in finance to buy Twitter, an apparent turning point that prompted the company’s board of directors to explore the purchase seriously. The board met on April 24 to consider Musk’s proposal.
“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal, focusing on value, certainty, and financing,” Twitter Independent Board Chair Bret Taylor said; the deal is the best path forward for Twitter’s stockholders.”
Following the acquisition announcement, Twitter shares were up about 6%, hovering around $51.84, slightly below the offer price. The transaction is subject to shareholder and regulatory approval. Twitter CEO Parag Agrawal said, “I know this is a significant change, and you’re likely processing what this means for you and Twitter’s future.”