Elon Musk buys Twitter:
Twitter’s board unanimously accepted Tesla CEO Elon Musk’s $44 billion offer to buy the company and take it private.
Musk has criticized his CEO Parag Agrawal’s platform and approach to free speech.
“Freedom of expression is the foundation of a functioning democracy, and Twitter is the digital public square where issues vital to the future of humanity are debated,” Musk said in a statement. “I also want Twitter to be better than ever by improving the product with new features, making algorithms open source to increase trust, defeating spambots, and authenticating all humans. Twitter has huge potential. I look forward to working with the company and the user community to unlock it.”
Musk will pay $54.20 per Twitter share, matching his original offer of $44 billion. When the deal is complete, Twitter will once again be a private company.
Elon Musk buys Twitter: Twitter’s board initially resisted Musk’s attempt to buy the company.
Following Musk’s offer, Twitter adopted a time-limited shareholder rights plan, commonly known as a poison pill. This prevents him or any other entity or group from acquiring 15% or more of Twitter’s outstanding common stock in a transaction not approved by the board.
Undeterred, Musk secured up to $46 billion in financing and threatened to take his offer directly to shareholders.
At $54.20 per share, Musk will pay a “38% premium to Twitter’s closing stock price on April 1, 2022,” according to the terms of the deal. Twitter has not traded above that price since November 2021.
After Musk acquired a 9% Twitter stake, its stock price jumped from around $40 to more than $50 a share. The shares rose another 6% on Monday, to more than $52.
Twitter said the deal is expected to close in 2022, pending shareholder approval and other regulatory hurdles.