The board of Twitter Inc. has finally accepted Elon Musk’s $44 billion offer for the company, bringing the much-talked-about deal to a close.
The takeover, if it goes through, would mark one of the biggest acquisitions in tech history and will likely have global repercussions for years to come related to how billions of people use social media.
Under the terms of the deal, shareholders will receive $54.20 in cash for each share of Twitter stock they own, matching Musk’s original offer and marking a 38% premium over the stock price the day before Musk revealed his stake in the company..
Musk first proposed the $54.20-a-share transaction on April 14, igniting a frenzied few weeks as Twitter leaders and Wall Street rushed to figure out whether Musk was serious or not.
The deal comes after Musk revealed last week he had lined up $46.5 billion in financing to acquire the company, an apparent turning point that forced Twitter’s board to seriously consider the deal.
The board met Sunday to evaluate Musk’s offer.
In his offer letter to Twitter, Musk says: “I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy.
“However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form.
“Twitter needs to be transformed as a private company.”
“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing,” Twitter chairman Bret Taylor said in a statement. “The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.”
The deal would put the world’s richest man in charge of one of the world’s most influential social media platforms.
It emerged today that the deal fell through after Musk secured the funding he needed.
According to a new filing with the U.S. Securities and Exchange Commission, he has received commitments from a collection of banks led by Morgan Stanley to provide $46.5 billion to take Twitter private.
Musk’s first offer to Twitter was contingent on his ability to secure financing, but the filing reads, Musk’s proposal “is no longer subject to financing as a result of the Reporting Person’s receipt of the financing commitments.”
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