April 21, 2024 7:24 am

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Elon Musk acquires social media giant Twitter for $44 Billion

Twitter Inc. announced today that it has officially accepted Elon Musk’s $44 billion bid. According to its press release, Twitter Inc. has “entered into a definitive agreement to be acquired by an entity wholly owned by Elon Musk. […] Upon completion of the transaction, Twitter will become a privately held company.”

The announcement comes just 11 days after Musk announced his intent to buy the company. On April 14, Musk tweeted, “I made an offer,” and disclosed a Securities and Exchange Commission filing to amend his original purchase of 9.1% (or 73,115,038 shares) of Twitter stock to now include 100% of the stock (over 800 million shares) in the company. 

As noted in the terms of agreement laid out in the press release, the $44 billion price tag will be divvied up among Twitter stockholders, with each one set to receive “$54.20 in cash for each share of Twitter common stock that they own upon closing of the proposed transaction.” The dollar amount 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.”

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

Free speech has been a central topic of this story since Musk first purchased 9.1% of the company earlier this month. Just three hours before it was announced that he would become the sole owner of Twitter, Musk tweeted, “I hope that even my worst critics remain on Twitter, because that is what free speech means.”

Immediately following today’s announcement, Musk tweeted his thoughts on free speech, referring to it as “the bedrock of a functioning democracy.”

Musk’s actions have caused a stir among Twitter users, with many suggesting they’d leave the platform should he become its owner. Others have been optimistic about the idea. Some users have even been pressing Musk to reinstate former-president Donald Trump’s Twitter account if the deal went through. As of the time of this report, Musk has yet to comment publicly on whether or not he will reactivate Trump’s account.

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