- (1) Elon Musk becomes the owner of Twitter.
- (2) Twitter gives in to Musk’s $43 billion or $54.20 per share offer.
- (3) Elon Musk is expected to transform Twitter into a “free speech” platform.
Elon Musk’s $54.20 per share bid was accepted by Twitter, and Mr Musk now owns the California-based social media company. He was successful in his aggressive purchase of Twitter for $43 billion in cash at the “best and last” bid.
ELON MUSK BUYS TWITTER: HOW IT’S GOING DOWN?
It’s only been a few days since Elon Musk shocked the tech and business world by announcing his attempt to acquire Twitter on April 14, 2022. To take over the Cali-based corporation, he offered $54.20 per share or $43 billion in cash. Although sceptics were quick to discount Musk’s lack of cash reserves to get this done, many were hesitant to dismiss him completely.
Elon Musk, 50, later announced (through SEC filing) that he had obtained the necessary finances for the purchase of Twitter on April 20. He disclosed that he will put up to $21 billion of his personal money into the venture, with the balance coming from Morgan Stanley.
Then, today, Reuters reported that a possible transaction was on the verge of being authorized. Twitter executives were said to have been in discussions since last night, which lasted till Monday morning. With this announcement, Twitter’s stock jumped 6.2 percent in pre-market trade in the United States, reaching $51.98.
Twitter confirmed its acquisition by Musk a few hours later, at 14:50 ET on April 25, 2022. The board of the microblogging site has finally agreed to Musk’s finance plan, which includes contributions from Morgan Stanley and other financial institutions. “The Twitter Board conducted a rigorous and extensive process to analyse Elon’s bid with a deliberate focus on value, clarity, and finance,” stated Bret Taylor, Twitter’s Independent Board Chair.
The proposed transaction will provide a significant cash premium to Twitter investors, and we believe it is the best path ahead for the company’s stockholders.” “Free speech is the backbone of a functional democracy, and Twitter is the digital town square where subjects critical to humanity’s future are argued,” Musk added.
I also want to make Twitter better than it has ever been by adding new features, opening up the algorithms to increase trust, combating spam bots, and authenticating all humans. Twitter has enormous potential, and I’m excited to work with the company and the Twitter community to realise it.” “Twitter serves a function and is relevant to the entire world.” “We are extremely proud of our staff and motivated by work that has never been more vital,” said Parag Agrawal, the company’s CEO. According to research firm Equilar, if Mr. Agrawal is fired within 12 months of a change in power at Twitter, he will be paid an estimated $42 million.
