Elon Musk buys Twitter for $44bn

Twitter announced late on Monday that it has entered a definitive agreement to be acquired by Elon Musk for $54.20 per share in a deal valued at $44 billion.

The transaction was unanimously approved by Twitter’s board and is expected to close this year subject to the approval of Twitter’s shareholders and other regulatory approvals.

“Under the terms of the agreement, Twitter stockholders will receive $54.20 in cash for each share of Twitter common stock that they own upon closing of the proposed transaction,” Twitter said in a statement. “The purchase price represents a 38% premium to Twitter’s closing stock price on April 1, 2022, which was the last trading day before Mr. Musk disclosed his approximately 9% stake in Twitter.”

The company announced that Musk secured $25.5 billion of fully committed debt and margin loan financing and is providing a $21 billion equity commitment.

Bret Taylor, Twitter’s Independent Board Chair, said, “The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing. The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.”

Parag Agrawal, Twitter’s CEO, said, “Twitter has a purpose and relevance that impacts the entire world. Deeply proud of our teams and inspired by the work that has never been more important.”

Agrawal invited employees to a meeting so management could address their questions following the take over.

“The Twitter Board has announced it has entered into an agreement for Twitter to be acquired by a private entity fully owned and controlled by Elon Musk,” Agrawal said. “I know this is a significant change and you’re likely processing what this means for you and Twitter’s future.”

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