Elon Musk Buys Twitter in $44 Billion Blockbuster Deal, Plans to Take Company Private
Musk said he plans to make Twitter better than ever by taking a more lenient approach to content moderation on the platform.
Twitter (NYSE: TWTR) shareholders will receive $54.20 in cash for each share of TWTR stock owned, marking a 38% premium over the stock’s closing price on April 1, 2022, the day before Musk announced his 9% majority stake in the social media firm.
It’s official, on Monday, Elon Musk and Twitter agreed to terms on a deal that will see the Tesla (NASDAQ: TSLA) CEO buy the social media company for $44 billion. Musk says he intends to take Twitter private because he believes it’s not living up to its potential as a free speech platform.
In a joint statement with Twitter, Musk stated that he plans to make the platform “better than ever” by adding new features and removing spam accounts. Musk said he also plans to make Twitter’s algorithms open-source to help increase the public’s trust.
Speaking on the deal, Musk stated:
“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. 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 spambots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”
????????♥️ Yesss!!! ♥️???????? pic.twitter.com/0T9HzUHuh6
— Elon Musk (@elonmusk) April 25, 2022
Also Read: Elon Musk Declines Twitter Board Seat, Initiates Hostile Takeover
Twitter CEO Parag Agrawal added:
“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 blockbuster deal, which Twitter’s Board unanimously approved, is slated to close this year. The agreement is subject to shareholder approval as well as the receipt of all applicable regulatory approvals and the satisfaction of other customary closing conditions.
Musk announced that he secured $25.5 billion in debt and margin loan financing to finance the transaction, along with a roughly $21 billion equity commitment. The deal is not subject to any financing closing conditions.
Speaking on behalf of Twitter’s board, Independent Board Chair Bret Taylor 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.”
Shares of Twitter climbed more than 5% on Monday after the deal was announced, reaching a high of $51.70. Twitter shares are currently changing hands at $49.05 per share, down 1.27% on the day. YTD TWTR stock is up 14.98%.
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