Elon Musk (Photo by Theo Wargo/Getty Images for TIME)
It’s official! After back and forth with Elon Musk, Twitter has accepted his offer to purchase the company for approximately $44 billion! CNN reports that the deal will take the company private, and the billionaire has become one of Twitter’s largest shareholders. With everyone talking about the purchase, let’s get into the tea about the terms of the deal! CNN states that shareholders will receive $54.20 in cash for each share of Twitter stock they own.
This will match Elon’s original offer and mark a 38% premium over the stock price before Musk revealed his stake in the company. The StockX and Tesla CEO released a statement about purchasing the company stating, “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated. ” He added, “Twitter has tremendous potential — I look forward to working with the company and the community of users to unlock it.”
Although the deal, which was unanimously approved by Twitter’s board, is official, it’s expected to be finalized and closed this year. The board met on Sunday to evaluate Elon’s offer. Twitter independent board chair Bret Taylor spoke out about the deal, saying, “The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing.” He also said the deal was “the best path forward for Twitter’s stockholders.”
Elon’s name has trended online all day as many Twitter users expressed concerns about the platform’s future. Partly due to his stance on free speech. One person tweeted, “Elon Musk better get on here, sit down, and don’t touch nothing!” Another tweeted, “Elon Musk now owns Twitter. From this day forward, April 25th is “Twitter Independence Day.” Roommates, are you looking forward to the changes?
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