twitter sold to elon musk

This week Elon Musk announced his bid to purchase Twitter and remove it from the market. At initially, it appeared that the company would respectfully (or not so politely) decline. But, a couple of days later, it appears that it rethought the decision and has now officially announced that it’s acquiescing to Musk’s bid.

This implies that Twitter is now “entered into a binding agreement to be purchased by an entity held by Elon Musk”, according to the press release of the company. The cost will be $54.20 for each share of cash (which is there are no shares in the SEC’s terminology, and is not the actual amount of cash however). So the total cost of the transaction is $44 billion. After completion (which could take several months due to all the regulatory scrutiny it’s sure to encounter), Twitter will become an unincorporated firm and will not be able to trade its shares at any exchange.

Musk’s original idea at the time and it appears that things are coming together perfectly for Musk. The price per share that he’s paying is 38% more than the closing price of Twitter’s stock at the time the shares last traded.

“Free speech constitutes the foundation of a democratic system, as well. Twitter is the town square where issues that are crucial to humanity’s future are discussed”, Musk said. “I would also like to create Twitter better than it has ever been by making the platform more user-friendly with new features, and making it open-source to improve confidence, eliminating bots that spam the site, and establishing an authentic connection with every human. Twitter has a lot of potential. I am looking forward to working alongside the team and its group of people to realize its potential” He continued.

Musk obtained $25.5 billion in “fully committed loans and debt” and plans to use around $21 billion from his personal equity to fund the purchase.

Twitter has agreed to a $44bn (£34.5bn) deal