- Twitter’s board has accepted billionaire Elon Musk’s offer to buy the social media company and take it private
- The announcement will see the World Richest Man add Twitter to his list of companies as he looks to revolutionised the app
- Twitter’s board tried so hard to fend off Musk's offer but it was too good to ignore as musk offered a huge $54.20 per share
This is coming exactly a week after Musk made his intention known to buy his favourite social media platform at $54.20 per share,
Twitter will become a private company once the deal is complete.
Following the announcement of an agreement Twitter's stock soared more than 5% on Monday.
PAY ATTENTION: Subscribe to Digital Talk newsletter to receive must-know business stories and succeed BIG!
Reuter reports that Musk met with several shareholders over the weekend to discuss the details of his $54.20 per share bid for the social media platform.
According to the report, Musk's outreach forced the Tesla CEO's $43 billion takeover bid to be seriously considered by the board of directors.
Here’s the full announcement from Twitter:
“Twitter, Inc. today announced that it has entered into a definitive agreement to be acquired by an entity wholly owned by Elon Musk, for $54.20 per share in cash in a transaction valued at approximately $44 billion. Upon completion of the transaction, Twitter will become a privately held company.
Under the terms of the agreement, Twitter stockholders will receive $54.20 in cash for each share of Twitter common stock that they own upon closing of the proposed transaction. The purchase price represents a 38% premium to Twitter’s closing stock price on April 1, 2022, which was the last trading day before Mr. Musk disclosed his approximately 9% stake in Twitter.
Bret Taylor, Twitter’s Independent Board Chair, said,
“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.”
Parag Agrawal, Twitter’s CEO, said,
“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.”
“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,” said Mr. Musk. “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.”
Elon Musk sued to court by Twitter shareholders for failing to disclose stake in time
Legit.ng has reported that former Twitter shareholders have dragged the world’s richest man, Elon Musk to court for failing to reveal his stake in Twitter on time.
The shareholders say they missed out on the recent events in Twitter’s stock price because Musk waited long before disclosing a 9.2 per cent in the microblogging site, according to Reuters’ report.
In a class action filed in the Manhattan federal court, New York, the stakeholders said the billionaire businessman made false and misleading statements and omissions by not revealing he had invested in Twitter by 24, 2022, as the law requires.