Elon Musk Reaches $44 Billion Deal to Take Twitter Private
Elon Musk agrees to purchase Twitter for $44 billion, taking the social media platform private at $54.20 per share. The board unanimously approves the transaction, which expects to close later this year.
Elon Musk reaches a definitive agreement to acquire Twitter for approximately $44 billion, or $54.20 per share in cash. This purchase price represents a 38 percent premium to the social media company's stock price before Musk reveals his 9 percent stake. Once the transaction closes, Twitter transitions from a publicly traded entity into a privately held company.
The Twitter Board of Directors unanimously approves the deal after a comprehensive review of the proposal's value, certainty, and financing. Musk secures $25.5 billion in debt and margin loan financing while providing a $21 billion equity commitment. The transaction requires approval from Twitter stockholders and regulatory bodies, but it contains no financing conditions to halt the closing process.
Musk states that free speech serves as the bedrock of a functioning democracy and describes Twitter as the digital town square for vital debates. He outlines plans to enhance the platform by adding new features, open-sourcing algorithms to boost trust, and defeating spam bots through human authentication. The acquisition expects to close in 2022, subject to standard regulatory approvals and customary closing conditions.