Elon Musk buys Twitter for $ 44 billion

Twitter’s board announced that it agreed to sell the company to Tesla CEO Elon Musk, culminating in the world’s richest person’s quest to acquire his favorite social media platform and take it private.

“Freedom of expression is the foundation of a functioning democracy, and Twitter is the digital urban space where issues crucial to the future of humanity are discussed,” Musk said in a press release. He plans to add new features, change algorithms and get rid of spambots on the social media platform.

Musk and Twitter’s board were close to an agreement after a meeting Sunday, according to The Wall Street Journal. Musk, who already owned about 9% of Twitter shares, said he had secured $ 46.5 billion to complete the purchase.

The reported deal follows Musk’s offer on April 14 to buy Twitter for $ 54.20 per share, or about $ 44 billion, to take the company private.

“My offer is my best and final offer, and if it is not accepted, I will have to reconsider my position as a shareholder,” Musk said in an application from the Securities and Exchange Commission. “Twitter has extraordinary potential. I’m unlocking it.”

Prior to the trade, Twitter’s shares had traded well below Musk’s offer price, suggesting that investors did not trust an agreement would be reached.

At a TED event in Vancouver later in the day when Musk made his offer, the billionaire acknowledged the uncertainty that he would implement a deal, but said he was pursuing Twitter because he believes that “it is very important that there is an inclusive arena for freedom of expression. ”

Musk’s interest caused unrest in the company. The day after Musk’s offer, Twitter’s board rejected it, saying it would adopt a “poison pill” defense against takeover.

This “does not prevent the board from engaging with parties or accepting an acquisition proposal if the board believes it is in the best interests of Twitter and its shareholders,” the company added in a statement.

Musk has previously created problems for himself on Twitter. In 2018, he tweeted that he had enough money to take Tesla privately, but a court later ruled that his claim was false and misleading.

At the Vancouver TED event, Musk repeated the controversy.

“I was forced to submit to the SEC illegally. These bastards,” Musk said of regulators, according to Reuters.

Following Musk’s tweets in 2018, Tesla shareholders asked U.S. District Judge Edward Chen to stop the CEO’s “public campaign to present a contradictory and false narrative.”

The SEC accused Musk of securities fraud over those tweets. Musk settled for $ 40 million, half of which was paid for by Tesla.

As part of the settlement, Musk agreed to resign as Tesla chairman for three years, promising that he would allow the company to preview statements about the company.

Leave a Reply

Your email address will not be published. Required fields are marked *