At last, Twitter Inc announced that it’s willing to get acquired by Elon Musk, at an offer he previously quoted.
The confirmation comes from Twitter’s board chairman, who said the transaction will be completed this year after receiving all the regulatory and shareholders’ approval. Twitter’s share price has spiked 5% on Monday trading hours.
Elon Musk Is Buying Twitter
The hype around Elon Musk buying Twitter comes to end with the confirmation today, that it’s finally getting sold at what Musk offered earlier! On late Monday, Twitter’s independent board chair, Bret Taylor 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.”
Both Elon Musk and Twitter have entered a definitive agreement, where they accept getting acquired wholly by a firm run by Elon Musk. This is by paying $54.20 to every shareholder of Twitter by the closing time of this transaction.
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. https://t.co/5iNTtJoEHf
— Parag Agrawal (@paraga) April 25, 2022
This price is a 38% premium to Twitter’s closing stock price on April 1, 2022, the day when Elon Musk disclosed his 9% stake acquisition in Twitter. This values Twitter at near $44 billion, considering all the common stock out there. He even rejected an offer to join the board to acquire the whole company one day.
Post-transaction, Twitter will be a private company once again. And with this status, Elon Musk is aiming to;
“make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spambots, and authenticating all humans.”
Though the board has unanimously approved Musk’s offer, this deal is subject to go through the approvals of Twitter stockholders and concerned regulators, which is expected to be done this year.