Last week Elon Musk announced his offer to fully acquire Twitter and take it off the stock market, and initially it looked like the company would politely (or not so politely) decline. However, a few days later he seems to have given some thought and today officially announced that he is accepting Musk’s offer.
This means that Twitter has now “entered into a definitive agreement to be acquired by a wholly owned subsidiary of Elon Musk,” according to the company’s press release. The price is $ 54.20 per share in cash (which means not actions in SEC language, and not real money, on purpose). Therefore, the total transaction value is approximately $ 44 billion. Upon completion (which could take months due to all the regulatory scrutiny it is bound to encounter), Twitter will become a private company and will no longer have its shares listed on any stock exchange.
This was Musk’s initial plan, after all, and it seems like everything is coming together well enough for him. The price per share he is paying represents a 38% premium over the closing price of Twitter’s stock when his stock was last traded.
“Free speech is the foundation of a functioning democracy and Twitter is the digital town square where vital issues for the future of humanity are debated,” said Musk. “I also want to make Twitter better than ever by improving the product with new features, making the algorithms open source to increase trust, defeating spam bots, and authenticating all humans. Twitter has enormous potential: I’m looking forward to working with the company and the user community to unlock it, “he continued.
Musk has secured $ 25.5 billion of “fully committed debt and margin loan financing” and is using approximately $ 21 billion of equity to finance the purchase.
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