Elon Musk, the billionaire founder of Tesla Inc., has agreed to buy Twitter Inc. for $44 billion.
According to the deal, investors will receive $54.20 for each Twitter share they own, the company said in a statement Monday.
The price is 38 per cent more than the stock’s close on April 1, 2022, the last business day before Musk disclosed a significant stake in the company, sparking a share rally.
Upon completion of the transaction, Twitter will become a privately held company.
Bret Taylor, Twitter’s Independent Board Chair, said, “The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing. The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.”
Parag Agrawal, Twitter’s CEO, said, “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.”
🚀💫♥️ Yesss!!! ♥️💫🚀 pic.twitter.com/0T9HzUHuh6
— Elon Musk (@elonmusk) April 25, 2022
On Monday, Musk said he wants the platform to remain a destination for wide-ranging discourse and disagreement.
“I hope that even my worst critics remain on Twitter because that is what free speech means,” he tweeted.
Recently, Musk acquired a 9.2 per cent stake and announced a $43 billion offer to buy the company.
Twitter’s board of directors initially rejected the offer and enacted a limited duration shareholder rights plan, also called a “poison pill” to fend off a potential hostile takeover.
The billionaire had said that he would cut the salaries of the company’s board of directors to zero on successful takeover.
Source: Top Stories