Elon Musk Secures $44 Billion Twitter Takeover After Chaotic Month
Elon Musk successfully acquires Twitter for $44 billion after a rapid, unpredictable saga that begins with a passive stake and escalates into a full buyout. The social media company initially deploys a poison pill defense but ultimately accepts the massive offer.
Elon Musk officially acquires Twitter for $44 billion after a whirlwind month of unexpected corporate maneuvers. The saga begins in early April when Musk purchases a 9.2% stake in the social media company, initially earning a board seat before abruptly declining the position to pursue a complete takeover of the platform.
Musk faces widespread skepticism regarding his $43 billion offer, which values Twitter lower than its trading price from a year ago. Because the world's richest man is relatively cash poor, he relies on funding from Morgan Stanley and Bank of America, a financial strategy that requires him to liquidate significant shares of his Tesla and SpaceX holdings.
Twitter initially fights back against the hostile bid by implementing a poison pill defense, a strategy designed to dilute shares and make the acquisition prohibitively expensive. Despite these defensive efforts and ongoing regulatory scrutiny from the SEC regarding Musk's social media activity, Twitter ultimately accepts his $44 billion offer to take the company private.