Twitter has reportedly entered a definitive agreement to be acquired by Tesla and Space X founder Elon Musk in a cash deal worth $44 billion.
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 of the proposed transaction. Twitter will become a privately held company once the deal closes.
In a statement, the social network’s independent board chair, Bret Taylor, noted that the Twitter Board conducted a thoughtful and comprehensive process to assess Musk’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,” he said.
Parag Agrawal, CEO, Twitter, 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.”
Meanwhile, Musk reiterated that with the acquisition, he aims to “transform” Twitter as a platform for free speech.
“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 Musk.
He added, “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.”
Following the confirmation of the deal, Musk also tweeted, “I hope that even my worst critics remain on Twitter, because that is what free speech means.”
I hope that even my worst critics remain on Twitter, because that is what free speech means
— Elon Musk (@elonmusk) April 25, 2022
The Tesla founder reportedly began accumulating Twitter shares in January. Earlier this month, he revealed that he’d accumulated a nine percent stake, making him the company’s biggest individual shareholder.
Musk has secured $25.5 billion of fully committed debt and margin loan financing and is providing an approximately $21.0 billion equity commitment.
Twitter’s Board of Directors has unanimously approved the transaction, which is expected to close in 2022. However, it is still subject to the approval of Twitter stockholders and the receipt of applicable regulatory approvals and the satisfaction of other customary closing conditions.
