Twitter has officially accepted Elon Musk’s offer to buy the company, marking one of the biggest changes the social media platform has undergone.
Elon Musk has simultaneously been one of Twitter’s biggest fans and critics, culminating in an offer to buy the company for $54.20 per share. After initially fighting back, even adopting a “poisoned pill” strategy, the company has relented and accepted Musk’s offer.
The agreement was struck at Musk’s offer price, putting the deal’s value at approximately $44 billion. The price is a 38% premium over the stock’s closing price on April 1, 2022, one day before Musk’s 9% stake in the company was made public. Ultimately, that premium was too much for the board to ignore.
“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing,” said Bret Taylor, Twitter’s Independent Board Chair. “The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.”
Once the deal is completed, Musk plans on taking the company private, which will make it easier for him to reshape the company in his image.
“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,” said Musk. “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”
At this time it’s unclear what, if any, role current CEO Parag Agrawal will have moving forward, although he expressed his pride and support for the company.
“Twitter has a purpose and relevance that impacts the entire world,” Agrawal said. “Deeply proud of our teams and inspired by the work that has never been more important.”