Twitter, a social platform agreed to sell itself for $44 billion to Elon Musk, CEO of Tesla Motors on Monday, April 25th, 2022.
Although he was the company’s single largest shareholder, Mr. Musk turned down the offer to sit on the Twitter Inc board, a decision he said would be beneficial.
The deal was unanimously approved by Twitter’s board and is expected to close this year. It is subject to a vote of Twitter shareholders and irrefutable regulatory approvals.
Now, Twitter shareholders will receive $54.20 per share in cash, a 38% premium to Twitter’s closing stock price on April 1st, the last trading day before Mr. Musk disclosed his roughly 9% stake in the company.
Shares of Twitter, which were halted when the deal was announced, rose 5.9% to $51.80 after news of the agreement.
Mr. Musk plans to transform the platform by promoting free speech, giving users more control and making it a private 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,” he said.