Tesla CEO Elon Musk has come to be considered theking of twitter» for its continuous controversies triggered in this social network. Since the beginning of 2022 Musk has shown interest in acquiring the company, today he has finally done so.
Twitter has accepted its acquisition by $44 billion. Under the terms of the agreement, Twitter shareholders will receive $54.20 in cash for each Twitter common share they hold at the 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 disclosed his roughly 9% stake in Twitter.
“Freedom of expression is the foundation of a functioning democracy, and Twitter is the digital public square where vital issues for the future of humanity are debated,” he said. Musk. «I also want Twitter to be better than ever by improving the product with new features, making the algorithms open source to increase trust, defeating spam bots, and authenticating all humans. Twitter has enormous potential. I look forward to working with the company. and the user community to unlock it.«
Bret Taylor, independent chairman of the Twitter board of directorssaid: “Twitter’s board of directors undertook a thoughtful and comprehensive process to evaluate Elon’s proposal with a deliberate focus on value, certainty and funding. The proposed transaction will generate a substantial cash premium, and we believe it is the best way forward for Twitter shareholders.«.
Parag Agrawal, Twitter CEOsaid: “Twitter has a purpose and a relevance that impacts the entire world. Deeply proud of our teams and inspired by the work that has never been more important«.
Terms and financing
The transaction is expectedwhich was unanimously approved by the Twitter Board of Directors, to close in 2022, subject to Twitter shareholder approvalreceipt of applicable regulatory approvals, and satisfaction of other customary closing conditions.
Tesla CEO has secured $25.5 billion of debt and margin loan financing fully committed and is providing a capital commitment of approximately $21 billion. There are no financing conditions at the closing of the transaction.
For more information on all of the terms and conditions contained in the definitive transaction agreement, please see Twitter’s Current Report on Form 8-K, to be filed in connection with the transaction.
First Quarter 2022 Earnings Results
Twitter plans to publish its results for the first quarter of fiscal year 2022 before the opening of the market on April 28, 2022 . In light of the pending transaction announced today, Twitter will not hold a corresponding conference call.