London, Tuesday, 26 April 2022
Twitter stated on Monday that it has accepted Elon Musk's offer of $44 billion for the company.
In a statement, Twitter announced it has entered into a definitive deal to be acquired by a corporation fully owned by Musk, with Twitter owners receiving $54.20 in cash for each ordinary stock they held.
According to the announcement, "the purchase price reflects a 38 percent premium to Twitter's closing stock price on April 1, 2022, which was the last trading day before Mr. Musk disclosed his approximately 9 percent interest in Twitter."
After the purchase is completed, Twitter will become a privately held firm.
Parag Agrawal, Twitter's CEO, stated that the company has "a purpose and relevance that influences the entire world."
While many Twitter users expressed their displeasure with the purchase arrangement, Musk attempted to comfort them by stating that the agreement will have no impact on the firm or its policies.
"Free speech is the backbone of a functional democracy, and Twitter is the digital town square where important issues affecting humanity's future are debated," Musk said in a statement.
"I also want to make Twitter better than it has ever been by adding new features, opening up the algorithms to increase trust, combating spam bots, and authenticating all humans.
Twitter has enormous potential, and I'm excited to work with the company and the Twitter community to realise it "Added he.
On April 4, entrepreneur and business magnate Elon Musk, the founder of Tesla and SpaceX, announced that he had purchased a 9.2 percent stake in Twitter, making him the social media platform's largest investor.
According to a securities document issued Thursday, Musk was considering a tender offer to buy Twitter after receiving a $46.5 billion commitment for the deal.
(Reporting by: The Decision Maker – Banking & Finance editors)