Confirmed: Elon Musk to acquire Twitter for $44 billion
We reported earlier today that Tesla and SpaceX tycoon Elon Musk looked poised to snap up Twitter, and now we have official confirmation that Twitter’s board has indeed agreed to the takeover.
The social network has entered into a definitive agreement to be acquired by an entity wholly owned by Musk for $54.20 per share in cash, with a transaction value of approximately $44 billion.
Stockholders will receive $54.20 in cash for each share of common stock, a 38 percent premium to Twitter's closing stock price on April 1, 2022 -- the last day of trading before Musk announced his 9 percent stake in the platform.
Bret Taylor, Twitter's Independent Board Chair, 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."
Parag Agrawal, Twitter's CEO, added, "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."
Talking about his plans for the social network following the takeover, Elon Musk said:
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. 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.
The transaction, which has already been unanimously approved by the Twitter Board, is expected to close this year and once it has, Twitter will become a privately held company.
Over on Twitter, Musk posted a message for anyone thinking of leaving the social network as a result of him taking over the platform: