Elon Musk announced last week his bid to entirely acquire Twitter and delist it from the stock market. At first, it appeared that the firm would kindly decline the offer. However, it appears that there were debates and discussions done after a few days. The company now officially stated that it is accepting Musk’s bid.
According to the company’s press release, Twitter reached a final agreement with Elon Musk. Accordingly, an entity wholly owned by Elon Musk will acquire Twitter. The cash price is $54.20 per share, which means not shares in SEC-speak, and not actual cash, by the way. As a result, the total transaction value is around $44 billion. There will be no trading of shares in any stock market as Twitter will become a privately owned corporation, post-transaction. The process might take months due to all of the regulatory scrutinies it is certain to face.
After all, this was Musk’s original goal, and it appears to be working out very well for him. During the last listing of stocks, Elon musk’s pay per stock reflected a 38% premium over Twitter’s final stock price.
“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. Musk plans on making Twitter a comparatively better place by enhancing the product with new features. He also plans in making the algorithms open source to increase trust. Elon Musk plans to get the better of the spambots, and authenticate all humans. Musk believes that Twitter has tremendous potential. He looks forward to collectively working with the company and the community of users to unlock twitter’s potential.
Musk has managed to secure $25.5 billion of “fully committed debt and margin loan financing”. He is using roughly $21 billion over his own equity on top of it to fund the acquisition.