Elon Musk, the world’s richest man, has agreed to buy Twitter for $44 billion in an all-cash deal.
This is the biggest social media acquisition, surpassing the $26.2 billion of Linkedin by Microsoft.
In a surprise move, Tesla CEO Elon Musk offered $54.20 per share for the company’s stock, which is higher than the $40-plus it’s currently trading at.
Even though Twitter initially rejected the offer, it became clear on Monday that the company was considering it seriously and that an agreement was near.
According to an announcement made by Elon Musk on Monday evening, Twitter Inc. had entered into a definitive agreement to be acquired for $54.20 in cash per share by an entity wholly owned by Elon Musk, in a deal valued at approximately 44 billion dollars in total. Upon closing, Twitter will be a wholly-owned subsidiary of The Social Network, Inc.
Each Twitter common stockholder who owns a share at closing will receive $54.20 in cash as per the agreement terms and conditions. A 38 percent premium to the closing price of Twitter’s stock on April 1, 2022, which was the last trading day before Elon Musk publicly disclosed his approximately 9 percent stake in Twitter, is reflected in the purchase price
An independent board member of Twitter said that the board’s process for evaluating Elon Musk’s proposal focused on value, certainty, and financing. We believe that the proposed transaction will provide Twitter stockholders with a significant cash premium, and we believe it is the best path forward.”
Agrawal stated that “Twitter has a purpose and relevance that affects the entire world” in a statement. We are incredibly proud of our team members, and we are energized by the work that has never been more critical.”
