Elon Musk set to buy Twitter for $44 billion

Twitter’s board has accepted Tesla CEO Elon Musk’s offer to buy the company for a whopping $44 billion at $54.20 per share. When the transaction is complete, Twitter will become a private company.

Explaining the terms of the deal, Twitter said that all of the company’s stockholders will receive $54.20 in cash for each share of Twitter common stock that they own upon closing of the proposed transaction. “The purchase price represents a 38% premium to Twitter’s closing stock price on April 1, 2022, which was the last trading day before Mr. Musk disclosed his approximately 9% stake in Twitter,” Twitter said in a release.

“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,” Twitter CEO Parag Agarwal said about the occasion.

“I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it,” Musk added.

Twitter’s board on Musk’s offer

Notably, Twitter’s board warmed up to Musk’s deal shortly after The Boring Company CEO shared his plans of financing his bid to take over the social media platform. As a part of the plan, Musk will use up to $33.5 billion of his own money and $13 billion from Morgan Stanley for the purpose.

As per reports, Musk met with Twitter executives on Sunday to discuss his “best and final offer” to buy the company and take it private. Then on Monday, the two sides met to review the details of the deal such that they are in the best interest of the company and all Twitter stockholders.

Interestingly, the deal comes shortly after Twitter’s board adopted the shareholder rights plan” also known as ‘poison pill’ defense for a span of one year until April 14, 2023, in order to prevent Musk, or any other investor, from acquiring more than 15 percent of the company’s stocks.

The move followed Musk rejecting a seat on Twitter’s board after acquiring a 9.2 percent stake in the company in order to buy the micro-blogging platform. “Since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company,” Musk had written in a letter to Twitter’s Chairman Bret Taylor.

Faqs

Under his ownership, Musk has suggested, Twitter would treat content more permissively, pivoting away from content removals and account bans. He has also proposed opening up Twitter’s algorithm to public review so that, in theory, users could understand how it makes decisions.1 hour ago

Musk, the C.E.O. of Tesla and the richest man on earth, plans to take the social-media company private, and has said that he wants Twitter to adhere more closely to the principles of free speech, which, in a statement, Musk called “the bedrock of a functioning democracy.”2 hours ago

roughly $44 billion

In one of the world’s biggest deals in the tech world, billionaire Elon Musk has taken control of Twitter. The deal will see Musk acquire the social network for approximately $44 billion with shares valued at $54.20. Musk had announced his takeover bid on April 14, calling it his ‘best and final offer’.13 hours ago

Elon Musk Buys Twitter Money Offered In exchange for his stock in Tesla, the electric automaker he owns, the lenders were giving him $13 billion in debt financing and another $12.5 billion in loans against his shares in the company.16 hours ago

Elon Musk Buys Twitter Money Offered Musk revealed his funding arrangements with the investment bank Morgan Stanley and a group of other lenders in a securities filing made public on Thursday.16 hours ago

Conclusion

Elon Musk is buying Twitter and the deal is worth $44 billion at $54.20 per share.