Elon Musk Clinches Deal to Buy Twitter for $44 Billion

Elon Musk is poised to become the new owner of Twitter, after a fast flurry of negotiations left the company’s board with no choice but to accept the multibillionaire’s $44 billion takeover proposal.

Under the terms of the deal, 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 Musk, who is CEO of Tesla and SpaceX, disclosed his approximately 9% stake in Twitter.

Upon completion of the transaction, Twitter will become a privately held company.

Musk said in a statemnet, “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.”

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.”

Musk has said that as Twitter’s owner, he wants to expand the kind of speech the social network allows. The billionaire has criticized Twitter’s “failure” to uphold principles of free speech.

“I hope that even my worst critics remain on Twitter, because that is what free speech means,” Musk, who has more than 83 million followers, tweeted Monday ahead of the company’s official announcement accepting his offer.

On April 14, Musk — the richest person in the world — proposed to buy Twitter for $54.20 per share, and then last week claimed he had secured $46.5 billion in financing for a bid. Twitter had adopted a “poison pill” plan to fend off a potential hostile takeover. Musk earlier disclosed that he had acquired about 9.2% of Twitter’s outstanding shares, making him the largest shareholder in the company.

The transaction, which has been unanimously approved by the Twitter Board of Directors, is expected to close in 2022, subject to the approval of Twitter stockholders, the receipt of applicable regulatory approvals and the satisfaction of other customary closing conditions.