Rumours are circulating that billionaire business magnate Elon Musk has acquired the popular social media site Twitter. Can anyone verify the reported price he paid for it? Furthermore, has Twitter officially accepted the offer made by Musk?
Following the concerns raised, Twitter has confirmed its approval of the acquisition bid made by Elon Musk for a whopping $44 billion, thus giving Musk complete control of the company. As for the deal, Musk paid $54.20 for each share to finalize the acquisition.
The Wall Street Journal has reported that Elon Musk hosted confidential meetings with several corporate stakeholders to discuss the potential benefits of his proposal. Additionally, he placed multiple telephone calls to these shareholders to reinforce his point.
- In a surprising move on Monday, April 4, 2022, Elon Musk, the CEO of Tesla Motors, acquired a passive investor interest in Twitter by purchasing 73,486,938 shares, amounting to a 9.2 percent stake in the company. This transaction has strengthened the connection between the two tech companies, both of which have a significant presence in the technology industry.
- On April 21, Musk made another attempt to fully acquire the social media platform by offering $43 billion.
- To prevent a hostile takeover, the board of directors at Twitter put forward a ‘Poison Pill’ strategy.
- Nevertheless, on April 25, 2022, Twitter’s board of directors gave the green light to Musk’s acquisition proposal.
- Ultimately, Twitter’s board of directors authorized the proposition made by CEO of Tesla Motors, Elon Musk, to acquire the company and make it private.
Recently, Elon Musk stressed the significance of free speech within democracy, particularly in the digital realm of Twitter. Musk stated in a press release, “Free speech is a fundamental aspect of a functional democracy, and Twitter is the online equivalent of a town square where critical questions about the future of humanity can be deliberated.” By comparing Twitter to a town square, Musk implied that the platform is where people can discuss and debate important issues. Musk’s remarks underscored the value of free speech in fostering productive discussions and debates that are necessary for the success of a democratic society.
In an effort to enhance the social network platform, CEO of Twitter John Smith shared his vision of introducing new features and open sourcing the algorithms. Smith is confident that these measures will improve user confidence, curb spambots, and promote inclusivity, ultimately leading to a better overall user experience. To learn more about the impact of cutting-edge software on improving a company’s performance, please refer to our related blog post.
In a recent statement, CEO of Twitter Parag Agrawal expressed gratitude for the acquisition, stating that “Twitter plays an important role and serves a function that impacts the entire planet.” Agrawal further applauded the hard work of his team members and recognized the significance of their efforts. He ended his statement by reinforcing the platform’s relevance in today’s world.
Transaction Details and Financing
Pending approval from Twitter shareholders, the acquisition has been greenlit by the Twitter Board of Directors and is anticipated to be completed before the end of the year.
Upon completion of the acquisition deal, Twitter shareholders will be compensated $54.20 in cash for each share of their Twitter common stock, 38% higher than the closing stock price of Twitter on April 1, 2022, the day prior to Elon Musk’s announcement of his 9.2% purchased stake in the company.
In order to acquire Twitter entirely, Musk has secured $25.5 billion in fully committed debt, $21 billion in equity commitment, and margin loan financing.
Therefore, what led Elon Musk to take over Twitter?
Elon Musk expressed apprehension regarding Twitter’s rigorous content moderation policies, which he believes may curtail freedom of expression on the social media platform, and is now popular for offering a space to criticize politics and the government. With a workforce of roughly 7000 individuals, the majority of whom are involved in content moderation and software engineering, the company’s policies have come under scrutiny.
According to some experts, acquiring Twitter could be an effective method for Elon Musk to impact public discourse. However, opinions on the acquisition among Twitter employees have been mixed.
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