Twitter’s Board of Directors has accepted billionaire Elon Musk’s takeover bid to own the social network for $44 billion.
Twitter has accepted billionaire Elon Musk’s buyout offer. The board of directors of the social network has accepted the offer of the boss of Tesla which values the company 44 billion dollars, specifies Twitter in a press release.
Under the terms of the agreement, Twitter shareholders will receive $54.20 in cash for each share they own. The purchase price represents a 38% premium to Twitter’s closing price on April 1, 2022, which was the last trading day before Elon Musk disclosed his approximately 9% stake in Twitter.
The definitive acquisition agreement provides that the social network will be 100% owned by Elon Musk. Following the transaction, Twitter will become a private company.
A financially attractive proposition
“Twitter has purpose and relevance that impacts the world,” Parag Agrawal, Twitter CEO, said in the release. “Deeply proud of our teams and inspired by the work that has never been more important.”
The boss of Tesla and the richest man in the world therefore becomes the owner of the platform which he considers to be “the digital public square where vital subjects for the future of humanity are debated”, according to a quote in the communicated
First rejected, the proposal was finally accepted by Twitter. Because it was ultimately financially very interesting. Indeed, for five years the action has hardly moved, despite an increase in the number of users.
While Twitter was valued at just over 38 billion dollars, the boss of Telsa offers 44. For members of the board of directors, this allows them to get out of the stock market, with a little money.
The end of a soap opera that began in early April when Elon Musk became Twitter’s main shareholder by buying more than 9% of the capital. While his entry to the board of directors was expected, the company had finally let it be known that the billionaire would not finally enter it. A refusal that prompted the billionaire to embark on the acquisition of the platform.
