Twitter announced that its board of directors accepted Elon Musk’s offer
TWITTER — The social media company announced that its board of directors accepted Elon Musk’s offer of USD 54.20 per share, or USD 44 billion, for total control of the company.
In a press release, Twitter announced that it has entered into a “definitive agreement” to be acquired by an entity wholly owned by Musk, for USD 54.20 per share in cash in a transaction valued at approximately USD 44 billion. Twitter will “become a privately held company” upon completion of the transaction.
Under the terms of the agreement, the company’s stockholders will receive USD 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 percent premium to the company’s closing stock price on April 1, 2022, which was the last trading day before Musk disclosed his approximately 9 percent stake in the company.
Twitter’s Independent Board Chair Bret Taylor said that the Twitter Board conducted a “thoughtful and comprehensive process” to assess Musk’s proposal with a deliberate focus on value, certainty, and financing.
According to Taylor, the proposed transaction will deliver a substantial cash premium, and they believe it’s the best path forward for the company’s stockholders.”
“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 Agrawal said.
Musk, for his part, said that free speech is the “bedrock of a functioning democracy” and the company is the “digital town square” where matters vital to the future of humanity are debated.
Musk also said that he wanted to make the company better than ever by enhancing the product with new features, defeating the spam bots, making the algorithms open source to increase trust, and authenticating all humans.
He added that the company has a “tremendous potential” and he looks forward to working with the company and the community of users to unlock it.