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Elon Musk Buys Twitter for $44 Billion

Written by Nuel

New York (CNN)Twitter said Monday it has agreed to sell itself to Elon Musk in a roughly $44 billion deal that has the potential to expand the billionaire’s business empire and put the world’s richest man in charge of one of the world’s most influential social networks.

The deal, which will take the company private, caps off a whirlwind period in which the Tesla and SpaceX CEO became one of Twitter’s largest shareholders, was offered and turned down a seat on its board, and bid to buy the company — all in less than a month.
Under the terms of the deal, shareholders will receive $54.20 in cash for each share of Twitter stock they own, matching Musk’s original offer and marking a 38% premium over the stock price the day before Musk revealed his stake in the company.
“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 a statement Monday. “Twitter has tremendous potential — I look forward to working with the company and the community of users to unlock it.”
The deal, which was unanimously approved by Twitter’s board, is expected to close this year. It comes after Musk revealed last week he had lined up $46.5 billion in financing to acquire the company, an apparent turning point that forced Twitter’s board to seriously consider the deal. The board met Sunday to evaluate Musk’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,” Twitter independent board chair Bret Taylor said in a statement, calling the deal ” the best path forward for Twitter’s stockholders.”
Twitter stock was up nearly 6% following the announcement of the deal, hovering around $51.84, just shy of the offer price. The deal is pending approval from shareholders and regulators.
In an internal message to employees obtained by CNN, Twitter CEO Parag Agrawal said he would hold an all-hands meeting with Taylor on Monday afternoon to answer questions about the deal. “I know this is a significant change and you’re likely processing what this means for you and Twitter’s future,” he said.
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What Musk means for Twitter

Musk is both a high-profile Twitter client and a questionable one. He has more than 83 million supporters on the stage, which he has utilized throughout the years for all from sharing images and examining his organizations to offending lawmakers, spreading deluding claims about Covid-19, and offering hostile comments about the transsexual local area.
Musk has over and over pushed as of late that he wants to support free discourse on the stage and work to “open” Twitter’s “unprecedented potential.”

 

In his articulation Monday, Musk said he needs to “improve Twitter than any time in recent memory by upgrading the item with new elements, making the calculations open source to increment trust, overcoming the spambots, and verifying all people.” Separately, he said in a tweet Monday that he trusts “even my most awful pundits stay on Twitter since that free discourse implies.”

 

In any case, some industry specialists stress that Musk’s longing for the expectation of complimentary discourse on Twitter could mean moving back a portion of the stage’s work to control disdain discourse, deception, badgering, and other hurtful substance. Others addressed whether Musk could reestablish previous President Donald Trump’s record, which was taken out early last year for disregarding Twitter strategies against affecting savagery following the Capitol Riot. Such a move could have critical consequences for the impending 2024 US official political decision.
While Twitter is more modest than a few web-based entertainment rivals, it has an outsized impact the on the web and disconnected universes since it is utilized by numerous legislators, well-known people, and writers, and has in some cases gone about as a model for different stages in how to deal with destructive substance.
“Try not to permit Twitter to turn into a petri dish for disdain discourse, or lies that undermine our vote-based system,” Derrick Johnson, leader of the NAACP, said in a proclamation coordinated at Musk Monday following the arrangement.

 

A new and dubious period for Twitter
In the days since Musk’s underlying bid, many following the organization contemplated whether Twitter would attempt to observe another purchaser, particularly after the organization set up a death wish to make it more challenging for Musk to get the organization without its endorsement.
Yet, CFRA senior value examiner Angelo Zino said Monday that Twitter’s board all the more genuinely considering Musk’s proposition might have come “from the Board’s acknowledgment that an elective bid from a ‘white knight’ might be challenging to stop by, particularly following the decrease in resource costs from web-based entertainment organizations lately/months.”
It’s not satisfactory whether Agrawal — who assumed control over the CEO job from pioneer Jack Dorsey in November — will stay in the top work following the takeover. Musk recently tweeted an image contrasting Agrawal with previous Soviet pioneer Joseph Stalin. Musk additionally said in his deal letter to purchase Twitter that he doesn’t “really believe in administration.”

 

The deal could, however, put an end to nearly a decade of chaos at Twitter as a public company, during which it has cycled through CEOs, grappled with an activist investor, and struggled to ignite growth and successfully monetize its influential user base.
Agrawal said in Monday’s statement that “Twitter has a purpose and relevance that impacts the entire world,” He added: “Deeply proud of our teams and inspired by the work that has never been more important.”

 

As recently as last week there was little clarity on whether Musk’s bid would succeed. The 50-year-old billionaire himself mused at a TED event the day it was announced that even he had doubts about its prospects. Though the stock initially jumped on news of Musk’s stake in the company, shares have traded well below the original offer price of $54.20 since its announcement — sign investors were skeptical a deal would come to fruition.

Twitter on April 15 adopted a shareholder rights plan — a measure known as a poison pill — to fend off unwanted bidders. The plan is exercisable if a party acquires 15% of the stock without prior approval, and sought to ensure that anyone taking control of the social media company through open market accumulation pays all shareholders an appropriate control premium, the company said when it disclosed the plan.

But a turning point came last week when the Tesla Inc. CEO pulled together a financing plan that included 12 banks, led by Morgan Stanley. Just days after revealing the plan, Musk met with Twitter executives as the company turned more receptive toward a deal, a person with knowledge of the matter told Bloomberg News on Sunday.

 

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Nuel

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