Business

Elon Musk agrees to buy Twitter for $44bn

Author:
Aderemi Ojekunle

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.

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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.”

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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.

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