The Chief Executive Officer (CEO) and Founder of Tesla Mr. Elon Musk finally sealed deal with Twitter and bought the company for $44 billion. On the 26th of April, Tuesday, the Tesla CEO announced the same, after Twitter company’s board decided to give in to his takeover bid with his “best and final” offer.
Twitter announced late on Monday that it has entered into a definitive agreement to be acquired by an entity wholly owned by Mr. Elon Musk for $54.20 per share in cash in a transaction valued at nearly $44 billion. Upon completion of the transaction, Twitter will become a privately-held company.
Furthermore, the purchase price represents a 38% premium to Twitter’s closing stock price on the 1st of April, which was the last trading day before Mr. Elon Musk disclosed his nearly 9% stake in Twitter.
Mr. Bret Taylor, Twitter’s Independent Board Chair said, “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.”
Mr. Parag Agarwal, the CEO of Twitter, also took to Twitter and posted that the company, “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 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. https://t.co/5iNTtJoEHf
— Parag Agrawal (@paraga) April 25, 2022
The transaction, which has been unanimously approved by the Twitter Board of Directors, is expected to close in 2022, subject to the approval of Twitter stockholders.
Meanwhile, Mr. Elon Musk shared a tweet regarding the use of Twitter and how he is planning to use the platform. The tweet read, “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.”
Mr. Elon Musk has secured $25.5 billion of fully committed debt and margin loan financing and is providing a nearly $21 billion equity commitment. With this, the world’s richest man got hold of one of the most powerful social media platforms, where it enjoys the company of more than 83 million followers. The Tesla CEO had promised “significant improvements to Twitter in coming months”.
Some of the initial changes that Twitter will see under Musk is an ‘Edit Button,’ which has been a popular demand among the users.
Stay tuned for further updates.
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