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.

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