Twitter has announced that the social media company will be sold to Tesla titan Elon Musk for around $44bn.
Mr Musk will pay $54.20 cash per share for the San Francisco-based company, which will now be taken private after days of intense negotiations between the entrepreneur and the platform’s board.
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“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,”said Parag Agrawal, Twitter’s CEO.
The board announced it had reached a deal with Mr Musk on Monday, and that it represented a 38 per cent premium from Twitter’s closing price on 1 April, the day before the world’s richest person made his move for the company by announcing his nine per cent stake.
“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,” said Bret Taylor, Twitter’s Independent Board Chair.
In a statement the company said that the deal had “been unanimously approved by the Twitter Board of Directors” and that it was expected to close in 2022, if approved by shareholders.
The company confirmed that Mr Musk, who is worth an estimated $259bn, had secured $25.5bn in debt and loan financing, and was providing $21bn of equity commitment.
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When he announced his desire to buy Twitter, Mr Musk wrote in a letter to the board: “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.”
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