Twitter announces company will be sold to Tesla titan Elon Musk for $44bn
Twitter has announced that the social media company will be sold to Tesla titan Elon Musk for around $44bn.
Mr Musk will pay $54.20 cash per share for the San Francisco-based platform, which will now be taken private after days of intense negotiations between the entrepreneur and the board.
“Twitter has a purpose and relevance that impacts the entire world. Deeply proud of our teams and inspired by the work that has never been more important,”said Parag Agrawal, Twitter’s CEO.
The board announced it had reached a deal with Mr Musk on Monday, and that it represented a 38 per cent premium from Twitter’s closing price on 1 April, the day before the world’s richest person made his move for the company by announcing his nine per cent stake.
“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing. The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders,” said Bret Taylor, Twitter’s Independent Board Chair.
In a statement the company said that the deal had “been unanimously approved by the Twitter Board of Directors” and that it was expected to close in 2022, if approved by shareholders.
The company confirmed that Mr Musk, who is worth an estimated $259bn, had secured $25.5bn in debt and loan financing, and was providing $21bn of equity commitment.