IT House April 26 news, Twitter Twitter announced in today’s press release,Has accepted Elon Musk’s $44 billion offer to buy the company. After the deal, Twitter will become a privately held company.
Musk takes$54.20 per sharebought the company for the same price he gave in his initial offer on April 14.
“Freedom of speech is the cornerstone of how democracy works, and Twitter is a digital town square where people discuss issues that are vital to the future of humanity,” Musk said in a statement in a press release. “I also want to make Twitter better than ever by enhancing the product with new features, making algorithms open source to increase trust, defeating spam bots, and authenticating everyone.”
Twitter CEO Parag Agrawal also praised the deal in a press release, saying “Twitter’s purpose and relevance affects the entire world.”
IT House has learned that Musk outlined his plans to fund the deal in Thursday’s filing with the Securities and Exchange Commission, which includes a $25.5 billion loan and $21 billion in personal equity. Analysts believe the loans could cost Twitter as much as $1 billion a year in service fees, or about 20% of the company’s annual revenue.
Soon after Musk announced the acquisition, Twitter’s board of directors drew up a “poison pill” plan, suggesting it intended to boycott Musk’s takeover. It’s unclear what caused the company to change its mind. A New York Times report on Monday said Twitter employees were divided on the news and received little information about ongoing negotiations.
Musk has previously been an outspoken critic of Twitter, calling himself a “free speech absolutist.” “It’s very important that people have the reality and perception that they can speak freely within the law,” Musk told Chris Anderson during TED 2022.
TwitterThe company said,Product changes will be frozen until Friday, product updates will not be allowed unless there is an important business. This is intended to prevent employees from making unauthorized changes.The transaction is expected to be Completion in 2022but also requires Twitter shareholder approval and regulatory approval.
Markets close on Monday after acquisition newsTwittershare priceUp 5.66%at $51.7, with a market value of $39.477 billion.
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