It’s official. Just a few weeks since Elon Musk’s initial proposal SpaceX and Tesla’s CEO has Tesla CEO and SpaceX CEO have convinced Twitter to buy the company for $54.20 per share in cash, which values the now-private social media firm at around $44 billion.
“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing,” states Bret Taylor the Twitter’s Independent Board Chair, in an announcement.
“The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.”
According to the terms of this agreement, Twitter shareholders will be given $54.20 in cash per part of Twitter common stock they own at the time of closing the proposed deal.
The price for the purchase is an increase of 38% over the closing price of Twitter’s stock on 1 April 2022the day of trading prior to when Musk disclosed his 9.2 percent stake in the company.
Musk was able to obtain $25.5 billion in fully committed loans and debt which is about 50% of the financing, which amounts to around an equity commitment of $21 billion.
“Twitter has a goal and importance that impacts the entire globe. We are proud of our teams and inspired by their work that’s never more vital,” says Parag Agrawal the current CEO of Twitter in an announcement to the press.
It’s not clear if Agrawal will continue in his post within the company, or whether Musk will take over the role himself.
“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 stated in the announcement.
“I am also determined to improve Twitter more efficiently than ever before by making the service better by adding new features that make the algorithms open-source, which will increase confidence, tackle spambots, and authenticate all human beings. Twitter is a huge opportunity – I am looking forward to cooperating with Twitter and its group of people to realize its potential,” he added.
Musk has also tweeted earlier on Monday morning, saying that he would like to see that some of his “worst critics remain on Twitter,” because Musk believes “that is what free speech means.”