Elon Musk’s Twitter takeover will be completed this year if all conditions are met.
The board behind popular microblogging platform Twitter has finally announced that it has reached an agreement with Elon Musk, a development that will see the Tesla CEO and founder acquire 100% of the company’s stake.
Details of the Agreement
Announcing the development in a press release today, Twitter noted that it would accept Musk’s $54.20 per share bid worth approximately $44 billion.
Notably, once the deal is finalized, Twitter will be taken private by Musk, who is a known cryptocurrency enthusiast.
Excerpt of the terms of agreement of the deal shows that all Twitter stockholders will receive $54.20 for every of the company share they own, which represents a 38% increase to the value of the asset class as of April 1, 2022, the last trading day before the Tesla boss declared he own a 9% stake in the company.
“The Twitter Board conducted a thoughtful and comprehensive process to assess Musk’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,” Bret Taylor, Twitter’s Independent Board Chair, said.
Although the deal is tipped to close this year, its finalization will be subject to a number of factors, including shareholders’ and regulatory approval, as well as the satisfaction of other customary conditions.
According to the announcement, Musk has already secured $25.5 billion of fully committed debt and margin loan and he will also provide an additional $21 billion worth of equity commitment.
Interestingly, Twitter added that there are no financing conditions required before the close of the deal.
Musk’s Move to Buy Twitter
The internet has been riffed with reports of Musk moving to acquire 100% stake of Twitter. While many suggested that the acceptance of Musk’s $44 billion bid will not see the light of day, developments in the past few hours had indicated otherwise.
The Twitter board was forced into considering Musk’s proposal after the Tesla exec explained the financial details of his offer to Twitter shareholders, which saw a number of the company’s investors indicating interest in the deal.
For Musk, Twitter has the potential to reach tremendous heights when it is taken private with priorities given to free speech.
“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 in today’s announcement.
Meanwhile, Musk disclosed over the weekend that he will wage war on Twitter spam bots once his offer is accepted by the board.