Twitter accepts to sell company to Elon Musk for $44 billion

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Twitter accepts to sell company to Elon Musk for $44 billion

Twitter accepts to sell company to Elon Musk for $44 billion
Twitter accepts to sell company to Elon Musk for $44 billion

Twitter has agreed a definitive deal to sell itself to Elon Musk, the world’s richest man, at approximately $44 billion.

It is the biggest social media acquisition, surpassing the $26.2 billion buyout of Linkedin by Microsoft.

Mr Musk made an unsolicited bid for the giant social media company, offering to buy its shares for $54.20 a unit — reasonably higher than the $40 plus it has been selling.

https://twitter.com/RBReich/status/1518222193133502465?t=ex4ZlZ80Hz8CcPLV9rOcdg&s=19

After initially rejecting the offer, it became clear Monday Twitter was seriously considering the bid and both sides were close to a deal.

In a statement Monday evening, Mr Musk announced that Twitter Inc. had entered into a definitive agreement to be acquired by an entity wholly owned by Mr Musk, for $54.20 per share in cash in a transaction valued at approximately $44 billion. Upon completion of the transaction, Twitter will become a privately held company.

Under the terms of the agreement, Twitter stockholders will receive $54.20 in cash for each share of Twitter common stock that they own upon closing of the proposed transaction. The purchase price represents a 38% premium to Twitter’s closing stock price on April 1, 2022, which was the last trading day before Mr. Musk disclosed his approximately 9% stake in Twitter.

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, said, “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.”


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