Twitter announced today that it has entered into a definitive agreement to be acquired by Elon Musk for $54.20 per share. Once the deal is completed, Twitter will become a private company, and the social network will become “the city's digital plaza” where free speech will flourish.
Elon Musk's offer to buy Twitter has reached a logical positive end. On Monday, the platform stated, “that it has entered into a definitive agreement to be acquired by an entity wholly owned by Elon Musk, for $54.20 per share in cash in a transaction valued at approximately $44 billion.”
Under the terms of the agreement, Twitter shareholders will receive $54.20 in cash for each Twitter common share they own after the proposed deal closes. The purchase price represents a 38 percent premium to Twitter's stock price at the close of trading on April 1, 2022, when Musk announced his 9.1 percent stake in Twitter.
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.”
“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,” said Mr. Musk. “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 the spam bots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”
© 2022, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.