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Elon Musk buys Twitter after a day of negotiations with the social network’s shareholder board, which accepted the Tesla CEO’s offer of $44 billion for the platform. With this move, Twitter will become a 100% private company.
Under the terms of the agreement, Twitter shareholders will receive $54.20 in cash for each Twitter share to conclude the sale of the platform. Twitter’s share price is 38% higher than its closing price on April 1.
Board Chairman Bret Taylor said in a statement, “the Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing. The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.”
Twitter’s current CEO, Parag Agrawal, after the news of the purchase was confirmed stated, “Twitter has a purpose and relevance that impacts the entire world. Deeply proud of our teams and inspired by the work that has never been more important.”
The transaction, which was approved by Twitter’s board of directors, is expected to close in 2022. Musk secured $21 billion of his own money, along with a $25.5 billion loan backed by investment bank Morgan Stanley to make the purchase of the social network a reality.
“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,” Musk said at the press conference following the announcement of the purchase.
In a tweet hours before the purchase of the social network was confirmed, Musk said, “I hope that even my worst critics remain on Twitter, because that is what free speech means.”
Although the Twitter board was originally inclined to prevent Musk from acquiring the company through a series of financial maneuvers known as death pills, shareholders changed their minds after Musk announced the financing structure to buy Twitter.
As Twitter’s stock rose on Musk’s offer, Twitter’s shareholder board caved to the idea of selling 100% of the company to Tesla’s CEO.
[News in development]
Economist, writer and liberal. With a focus on finance, the war on drugs, history, and geopolitics // Economista, escritor y liberal. Con enfoque en finanzas, guerra contra las drogas, historia y geopolítica