Twitter, Inc. (NYSE: TWTR) today announced that it has entered into a definitive agreement to be acquired by an entity wholly owned by Elon Musk, for $54.20 per share in cash in a transaction valued at approximately $44 billion. Upon completion of the transaction, Twitter will become a privately held company.
Musk has topped the tech world with a massive acquisition of Twitter. The company serves as a platform for political leaders and experts, and it’s an information hub for millions of users. Its founder has long advocated free speech and has criticized content moderation. He sees Twitter as essential to democracy. And the price tag of $44 billion may not come as a surprise.
While Twitter is a tiny social network, it’s already been criticized for its role in the Arab Spring uprising, and has been accused of playing a role in the storming of the U.S. Capitol in 2021. The company is a popular target of President Donald Trump, who has said he won’t be returning to it. The White House declined to comment on the news.
🚀💫♥️ Yesss!!! ♥️💫🚀 pic.twitter.com/0T9HzUHuh6
— Elon Musk (@elonmusk) April 25, 2022
Musk’s deal to purchase Twitter is unlikely to go through as planned, as the company’s board of directors would likely need to borrow from Tesla stock in order to fund the acquisition.
But his recent tweets about Twitter’s algorithm and commitment to free speech have fueled controversy. And Twitter’s CEO has defended his own decision. The acquisition is unlikely to be blocked by regulatory issues, so there is no reason to be concerned.
The company’s board of directors unanimously approved the deal, and it’s expected to close later this year. The deal is still subject to regulatory approval and shareholder approval. Despite the risks to free speech, the deal is expected to bring a sizable cash premium to Twitter’s shareholders. Musk’s deal will be the first of its kind and may put an end to almost a decade of chaos at Twitter.
