Following a meeting with its shareholders, Twitter announced the $54.20-per-share agreement. The agreement comes just four days after Musk announced a financial package to support the transaction.
Elon Musk, the world’s richest man, agreed to acquire Twitter for $44 billion on Monday, ending a narrative that included hostile takeover threats before handing him personal control of one of the most prominent social media sites on the globe.
Twitter notably functioned as a megaphone for former US President Donald Trump until the network banned him, and Musk, a self-described “free-speech absolutist,” has stated he wants to change the company’s overbearing content management.
“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,” Musk stated in a Twitter release. “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots and authenticating all humans. ”
According to Twitter, the publicly listed corporation will now become a private company controlled by Musk, who negotiated a purchase price of $54.20 per share.
In a tweet, the company’s CEO, Parag Agrawal, wrote: “Twitter has a purpose and relevance that impacts the entire world.” I am deeply proud of our teams and inspired by the work that has never been more important. ”
Musk secured $46.5 billion in funding for the acquisition last week, and Dan Ives, an analyst at Wedbush Securities, projected earlier in the day that because the board could not find another buyer, it would likely accept Musk’s bid.
Musk, who has complained about excessive moderation on the network, purchased a 9% interest in Twitter earlier this month and then offered to acquire the entire company altogether, claiming a mission to protect free expression. His enormous wealth, which originates from the success of Tesla electric automobiles as well as other companies, said last week that he had secured financing.
Despite Elon’s wealth, the issue of finance had been viewed as a possible stumbling barrier because most of his holdings are in Tesla stock rather than cash.
Musk’s initiatives have heightened expectations for Twitter’s economic potential, which has failed to achieve sustainable growth despite its influence in culture and politics.
Under Agrawal, who took over as CEO late last year, Twitter has made progress on new monetization tools such as subscription goods. In a note, Truist Securities noted that “in the short term, Musk’s involvement at this stage runs the risk of disrupting such efforts.”
However, the contentious Tesla CEO’s campaign has alarmed technology and free-speech experts, who point to Musk’s unpredictable declarations and history of bullying opponents, which counter his claimed goals.
He stated in a filing that the transaction was backed by a $13 billion debt facility from a finance consortium led by Morgan Stanley, a second $12.5 billion margin loan from the same bank, and $21 billion from his own fortune.
(SOURCE- NDTV NEWS)