Has there been any confirmation that billionaire entrepreneur Elon Musk has purchased the social media platform Twitter? If so, what is the reported amount he paid for it? Has the offer from Elon Musk been accepted by Twitter?
In response to the various issues raised, Twitter announced its agreement to the takeover bid for an amount of $44 billion, thereby granting Elon Musk full authority of the company. Musk made a payment of $54.20 per share to acquire the firm.
According to the Wall Street Journal, Elon Musk held private meetings with a number of corporate shareholders to promote the merits of his concept, and he made multiple phone calls to these same shareholders in order to further emphasise his point.
- On Monday, April 4, 2022, Elon Musk, Chief Executive Officer of Tesla Motors, acquired 73,486,938 shares of Twitter, accumulating a 9.2 percent stake in the company as a passive investor. This purchase has further solidified the relationship between the two businesses, both of which have a strong presence in the technology sector.
- Musk renewed his bid to purchase a 100% stake in the firm on April 21, offering $43 billion.
- Twitter’s board of directors attempted to avert a hostile takeover by implementing a ‘Poison Pill.’
- However, on Monday, April 25, 2022, Twitter’s board of directors approved Musk’s takeover offer.
- Finally, the board of directors of Twitter approved Tesla Motors CEO Elon Musk’s offer to acquire the firm and take it private.
Elon Musk recently affirmed the importance of free speech in a democracy by emphasising its role in the digital town square of Twitter. In a news release, Musk stated, “Free speech is the backbone of a functional democracy, and Twitter is the digital town square where all essential questions regarding humanity’s future are discussed.” By equating Twitter to a town square, Musk suggested that it is the platform where debates about the future of humanity occur. Through his remarks, Musk highlighted the importance of free speech in enabling meaningful conversations and discourse that are essential for a democracy to thrive.
John Smith, CEO of Twitter, expressed his desire to improve the social network platform by adding new features and making the algorithms open source. He believes this will help to increase user trust, combat spambots, and validate all people, contributing to an overall better user experience.
In a news statement, Twitter CEO Parag Agrawal expressed his appreciation for the transaction, noting “Twitter is relevant and serves a function that affects the whole planet.” Agrawal went on to say that he was “extremely proud of our team members and motivated by work that has never been more vital.” He concluded by emphasising the importance of the platform’s role in today’s world.
Terms of the transaction and funding
The Twitter Board of Directors has unanimously authorised the acquisition, which is expected to be finalised prior to the conclusion of the year, pending approval from Twitter shareholders.
Upon conclusion of the proposed transaction, shareholders of Twitter will receive $54.20 in cash per share of their Twitter common stock. This purchase price is a 38% premium to the closing stock price of Twitter on April 1, 2022, the day prior to Elon Musk’s declaration of his 9.2% ownership interest in the company.
Musk has obtained $25.5 billion in fully committed debt, $21 billion in equity commitment, and margin loan funding for his 100% Twitter takeover.
So, why did Elon Musk seize control of Twitter?
Elon Musk expressed concern about Twitter’s stringent content moderation policies, which he argued could impede freedom of expression on the social media platform that increasingly serves as a platform for political and governmental criticism. With around 7000 employees, the majority of whom are involved in content moderation and software engineering, the company’s practices have been called into question.
Experts have suggested that if Elon Musk desires to have an impact on public discourse, then targeting Twitter would be a viable solution. However, opinions among employees at Twitter in regard to the buyout of the company have been somewhat divided.
Are you an engineering leader looking to assemble an engineering team that utilises cloud-based technology? If so, you should consider using Works. With our easy-to-use platform, you can access the cream of the crop from our extensive 1.2 million-strong talent pool. In no time, you’ll have the perfect team to bring your cloud-based engineering dream to life.