The month of April has been a rollercoaster ride for Twitter and especially Elon Musk. Where his proposed offer for buying Twitter was blocked earlier, the shareholders gave it a second thought after Musk explained the financing details of the offer. It is has now been confirmed that Twitter will be acquired by Elon Musk at the proposed offer of $54.20 per share in cash in a transaction valued at approximately $44 billion, which was also his “best and last” offer.
Furthermore, upon completion of the transaction, Twitter will become a privately held company ending its run as a public company which it began in 2013. 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.
The purchase price represents a 38% premium to Twitter’s closing stock price on April 1, 2022, which was the last trading day before Musk disclosed his approximately 9% stake in Twitter. 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 Elon 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”, he added.
The transaction, which has been unanimously approved by the Twitter Board of Directors, is expected to close in 2022, subject to the approval of Twitter stockholders.