Tesla CEO and asset owner Elon Musk has agreed to buy Twitter for $ 44 billion. Twitter will be unlisted by utilizing leveraged buyout (LBO), which is one of the largest ever.
Twitter stockholders will receive $ 54.20 per share, according to a statement released yesterday. This is 38% higher than the closing price on April 1st, the business day before Mr. Musk announced the acquisition of a large number of shares.
Twitter Headquarters in San Francisco (April 21st)
Photographer: David Paul Morris/Bloomberg
“Freedom of speech is the cornerstone of democracy’s functioning, and Twitter is a digital city square that discusses what is crucial to the future of humanity,” Musk said in a statement. It has potential. We look forward to working with the company and the user community to unleash this. “
Mr. Musk’s proposal was unanimously approved by the Twitter Board of Directors. The acquisition is expected to be completed by the end of the year. According to the announcement, Mr. Musk has secured $ 25.5 billion in borrowings and margin loans and will provide $ 21 billion in equity financing. Twitter shares were temporarily suspended when the deal was announced, but rose after reopening, ending at $ 51.70, up 5.7%.
Twitter CEO Parag Agrawal said in an email to Twitter employees that he would hold an internal meeting to discuss the matter.
Mr. Musk started acquiring Twitter shares in January this year. After intensifying criticism of Twitter’s algorithm bias and the abundance of auto-generated spam, on the 14th of this month, it proposed an acquisition / non-disclosure plan to make Twitter a free speech. He also offers ideas such as adding features that allow him to edit tweets after posting and getting rid of spambots.
Elon Musk (July 2021)
Photographer: Al Drago/Bloomberg
Original title:Elon Musk Lands Deal to Take Twitter Private for $44 Billion (2)(excerpt)
(Update with more details)