Twitter’s board has accepted Tesla CEO Elon Musk’s offer to buy the company for $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 shareholders of the company would receive $54.20 in cash for each share of Twitter’s common stock at the close of the proposed transaction. “The purchase price represents a 38% premium to Twitter’s closing stock price as of 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. Twitter CEO Parag Agarwal said of the occasion, “Deeply proud of our teams and inspired by work that has never been more important.”
“I want to make Twitter better than ever by enhancing the product with new features, making algorithms open source to increase trust, beat spam bots and authenticate all humans. Twitter has tremendous potential – I want to unlock it. I look forward to working with the company and its community of users,” Musk said.
Twitter’s board on Musk’s offer
Notably, soon after The Boring Company’s CEO shared his plans to finance his bid to take over the social media platform, Twitter’s board heated up Musk’s deal. As part of the plan, Musk will use $33.5 billion of his own money and $13 billion from Morgan Stanley for the purpose.
According to 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, so that they are in the best interest of the company and all Twitter shareholders.
Interestingly, the deal comes shortly after Twitter’s board adopted a shareholder rights plan, which has been called for a period of one year until April 14, 2023, to prevent Musk, or any other investor, from receiving more. Also known as ‘poison pill’ defense. 15 percent of the company’s shares.
The move comes after Musk rejected a seat on Twitter’s board after he acquired a 9.2 percent stake in the company to buy the micro-blogging platform. “Since making my investment, I now realize that the company will neither thrive nor meet this social imperative in its present form. Twitter needs to be transformed into a private company,” Musk wrote in a letter to Twitter chairman Brett Taylor.
Elon Musk’s post to buy Twitter for $44 billion first appeared on BGR India.