Finally, after weeks of the uncountable news about Elon Musk and Twitter, the company agreed to sell itself to Tesla CEO. In a deal valued at around $44 billion, Musk will take the company private.
In less than a month, SpaceX’s CEO became one of Twitter’s largest shareholders. The social media company offered him a seat on its board but he turned it down. Then he bid to buy the company. However, after long discussions between both sides, Twitter agreed to sell the company.
As Musk‘s original offer, shareholders will receive $54.20 in cash for each share of that social media stock they own. Which was a 38% premium over the stock price the day before he revealed his stake in the company.
Musk said in a statement Monday, “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. Twitter has tremendous potential — I look forward to working with the company and the community of users to unlock it.”
Twitter‘s board has unanimously approved the deal, which is expected to close this year.
Last week, Musk revealed that he had lined up $46.5 billion in financing to acquire the company. Which apparently was a turning point that forced Twitter’s board to seriously think about the deal. So, they met on Sunday to evaluate the billionaire’s offer.
“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon‘s proposal with a deliberate focus on value, certainty, and financing.” Bret Taylor,
The Twitter independent board chair said in a statement. Taylor also called the deal ” the best path forward for Twitter’s stockholders.”
Just after the announcement of the deal, the platform stock was up nearly 6%.