Twitter’s board of directors announced Monday that it has accepted the offer from billionaire entrepreneur Elon Musk to buy all of the stock of the social media giant so that he can take the company private.
Musk, famous for his development of electric vehicle giant Tesla and private space exploration firm SpaceX, said in a statement announcing the $44 billion agreement that “free speech is the bedrock of a functioning democracy,” and added that Twitter will again be the “digital town square” where vital matters are debated.
Musk added that he plans to make the social platform better than ever with new features and by making its algorithms “open source to increase trust.” He added that he planned to bring an end to spam bots by authenticating human users of the platform.
Musk went on to say that he looks forward to working with the community of users to unlock Twitter’s “tremendous potential.”
Twitter, Inc. confirmed in a press release that it has entered into a “definitive agreement” to sell all shares for $54.20 each in cash in such a way that Twitter will be a privately held company after the completion of the transaction.
The agreed purchase price will provide shareholders a 38 percent premium over the company’s closing share price on April 1, 2022, immediately prior to Musk’s disclosure that he had acquired an approximate 9 percent ownership interest.
Board Chair Bret Taylor said that the board assessed the proposal through a “thoughtful and comprehensive process” with a “focus on value, certainty, and financing.” The board said that it believes the transaction is in the best interests of the company’s shareholders.
The transaction is subject to the approval of the company’s stockholders and approval from the applicable regulatory agencies.
Musk has reportedly secured $25.5 billion in fully committed financing to go along with $21 billion of his available cash to close the deal. There are no contingencies in the agreement for financing.
Twitter plans to release its first quarter fiscal year 2022 financial results before the market opens on Thursday.
Trading of the company’s stock was temporarily halted on the news of the acceptance of Musk’s offer but was up more than 6 percent on the day after it resumed trading.
Fox News reported Monday afternoon that President Donald Trump will not return to Twitter after the sale of the company to Musk. Trump told the network that he planned to stay on TRUTH, a social media platform he has been developing. Trump said that he wishes Musk well and expects he will make improvements. He described Musk as “a good man.”