In a stunning turn of events, Elon Musk has officially bought Twitter. The process of acquiring Twitter began a few weeks ago, with Musk initially acquiring a little over 9 percent of the company. After refusing to take a position on the board of directors, many were confused about what Elon’s end goal actually was. But then it was revealed that taking such a position would keep him from buying more than 14.9 percent of the company, and it all became clearer. A little while later, Musk decided to make his “best and final offer” of 43 billion in cash for the entirety of the company — paying 54.20 dollars per share.
Twitter’s board of directors was initially hostile to the idea. They took a “purple pill” which effectively kept Musk from buying the company. Nonetheless, this was bound to not be in the interest of the stockholders — since the money Musk was willing to pay was significantly higher than the price of the stock. While this story is still developing, they certainly did come around to the idea. Here is a press release from Twitter chairmen Brett Taylor:
The Twitter Board has reached an agreement with @ElonMusk https://t.co/CCZ6IV6Q7P
— Bret Taylor (@btaylor) April 25, 2022
The article states:
“Twitter, Inc. (NYSE: TWTR) today announced 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. Upon completion of the transaction, Twitter will become a privately held company.
Under the terms of the agreement, Twitter stockholders will receive $54.20 in cash for each share of Twitter common stock that they own upon closing the proposed transaction. The purchase price represents a 38% premium to Twitter’s closing stock price on April 1, 2022, which was the last trading day before Mr. Musk disclosed his approximately 9% 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.”
This is major news that will surely rock the markets and future debates about free speech.
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