Tech

Twitter accepts Elon Musk’s $44bn takeover offer

Twitter’s board of directors has accepted a roughly $44 billion offer to sell the company to Elon Musk, handing control of the influential social media platform to the world’s richest man.

Announcing the deal, Musk said, “Freedom of expression is the bedrock of a functioning democracy” and described the social media platform as “the digital city square where matters important to the future of humanity are debated.”

Twitter shareholders will receive $54.20 in cash for each share of Twitter common stock they own upon closing of the transaction. The purchase price represents a 38 percent premium to the company’s closing price on April 1, the day before Musk announced that he had acquired a 9 percent stake in the company.

Musk said he wants to make Twitter “better than ever” by introducing new features, open-sourcing its algorithms, weeding out bots, and authenticating “all humans.”

He added, “Twitter has tremendous potential – I look forward to working with the company and the user community to unlock it.”

After Musk made his initial bid for the platform on April 14, Twitter launched a poison pill to limit its ability to build a sizable stake. But the board was forced to the negotiating table over the weekend after unveiling a $46.5 billion funding package for the deal.

“Twitter’s board of directors conducted a thoughtful and comprehensive process to evaluate Elon’s proposal, with a deliberate focus on value, security and funding,” said Bret Taylor, chairman of Twitter.

He added, “The proposed transaction will result in a significant cash reward and we believe this is the best way forward for Twitter shareholders.”

If completed, the deal would be one of the largest leveraged buyouts of all time — a feat few on Wall Street would have believed possible given the size of the deal.

Republicans hope the deal could pave the way for Donald Trump to return to the platform after the former president was banned for repeated violations of his rules on hate speech and misinformation.

“I hope even my worst critics stay on Twitter because that means freedom of speech,” Musk tweeted earlier Monday.

Twitter accepts Elon Musk’s $44bn takeover offer Source link Twitter accepts Elon Musk’s $44bn takeover offer

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