Elon Musk signs $44bn deal to buy Twitter
Elon Musk entered into an agreement to purchase Twitter Inc for $44 billion in cash on Monday in a transaction that will transfer control of the social media platform populated by millions of users and global leaders to the richest person on earth.
This is a turning point for the 16-year-old company that has established itself as one of the most influential public spaces in the world and is now facing a series of challenges.
Discussions about the deal, which seemed uncertain last week, quickened over the weekend after Musk wooed Twitter shareholders with details of the financing of his offer.
Under pressure, Twitter began negotiating with Musk to purchase the company at the suggested price of $54.20 per share. Freedom of expression forms the foundation of a functioning democracy, and Twitter is the digital town square where issues vital to the future of humanity are debated,” Musk said in a statement.
Stocks were up about 6% after the announcement. The deal represents a nearly 40 per cent premium over the closing price the day before Musk revealed it had purchased a stake of more than 9 per cent. In spite of this, the supply is below the $70 range where Twitter was trading last year.
It was approved by the board and is now voted on by the shareholders.
In a prepared statement, the company said Musk received $25.5 billion in debt and margin financing and committed $21 billion in equity.
It was not clear what the dismantling costs would be or who would be in charge of the new company.
The 50-year-old Elon Musk, who is also CEO of SpaceX rocket developer, said he wants to fight trolls on Twitter and proposed changes to the Twitter Blue premium subscription service, including slashing its price and banning advertising.
The billionaire, a strong cryptocurrency supporter, also suggested adding dogecoin as a payment option on Twitter.
Up to the time, Musk revealed an interest in Twitter in April, the company’s shares had slashed 10pc since Parag Agrawal became CEO of the company in late November.