Elon Musk purchases Twitter through a $44 billion deal announced by the social media platform on Monday. This puts him in charge of one of the world’s largest social media platforms.
This would mean that the company will be a private entity at the end of a month-long saga. The world was taken back when the world’s richest man became the largest shareholder and eventually turned down a seat on the board and finally purchased the platform.
Part of the terms of the deal was shareholders will receive $54.90 per share in cash. This was Musk’s original offer giving them a 38% premium from its closing value.
“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,” Musk said. “Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”
The deal was accepted by the Twitter board unanimously and is expected to close this year. It comes after Musk claimed that he has about $46.5 billion in financing that enables the purchase. This was one of the main factors prompting the board to accept the offer.
“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing,” Twitter independent board chair Bret Taylor said. He called the proposal “the best path forward for Twitter’s stakeholders.”
Twitter CEO Parag Agarwal said he will hold an all-hands meeting to answer questions about the deal. “I know this is a significant change and you’re likely processing what this means for you and Twitter’s future,” he said.