Elon Musk, the billionaire founder of Tesla Inc., has agreed to buy Twitter Inc. for $44 billion.
According to the deal, investors will receive $54.20 for each Twitter share they own, the company said in a statement Monday.
The price is 38 per cent more than the stock’s close on April 1, 2022, the last business day before Musk disclosed a significant stake in the company, sparking a share rally.
Upon completion of the transaction, Twitter will become a privately held company.
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.”
On Monday, Musk said he wants the platform to remain a destination for wide-ranging discourse and disagreement.
“I hope that even my worst critics remain on Twitter because that is what free speech means,” he tweeted.
Recently, Musk acquired a 9.2 per cent stake and announced a $43 billion offer to buy the company.
Twitter’s board of directors initially rejected the offer and enacted a limited duration shareholder rights plan, also called a “poison pill” to fend off a potential hostile takeover.
The billionaire had said that he would cut the salaries of the company’s board of directors to zero on successful takeover.