On Monday, April 25, Twitter announced that its board of directors had accepted billionaire Elon Musk’s bid to buy the social media business and take it private.
According to the press release, the cash deal for $54.20 per share is worth roughly $44 billion. Once the purchase is completed, Twitter will become a private firm.
At the close of the deal, Twitter shareholders will receive $54.20 in cash for each share of Twitter common stock they own. The purchase price is 38% higher than the business’s closing price on April 1, the day before Elon Musk said he had acquired a 9% interest in the company.
In a statement included in the press release announcing the $44 billion deal, Musk said, “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 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.”
Elon Musk said he wanted to make Twitter “better than ever” by introducing new features, making its algorithms open-source, stamping out bots, and authenticating “all humans”.
He added: “Twitter has tremendous potential — I look forward to working with the company and the community of users to unlock it.”
After Elon Musk first made his offer for the platform on April 14, Twitter launched a poison pill to limit his ability to build a substantial shareholding. But the board was forced to the negotiating table at the weekend after he unveiled a $46.5bn financing package for the deal.
“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing,” said Bret Taylor, Twitter chair.
He added: “The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.” If completed, the deal would be one of the largest leveraged buyouts on record.
Republicans are hopeful that the deal could pave the way for Donald Trump to return to the platform after the former president was banned for repeatedly breaching its rules around hate speech and misinformation.
Elon Musk tweeted earlier on Monday that “I hope that even my worst critics remain on Twitter because that is what free speech means.”