Twitter has accepted Elon Musk’s offer to buy the company at $54.20 per share.
The sale is a dramatic shift after the company had initially put measures in place to prevent Musk from acquiring the company.
Musk announced the statement posted to his Twitter, with the caption, “Yesss!!”
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“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 said.
Musk said that he intends to make Twitter better than it ever was by adding new features, adding that he hopes even his worst enemies remain on the app.
“I also want to make Twitter better than ever before by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spambots, and authenticating all humans.
“I hope that even my worst critics remain on Twitter because that is what free speech means,” he said.
The deal, which is now valued at about $44 billion, will see Twitter shareholders receiving $54.20 per share in cash, a 38% premium to the company’s closing stock on April 1st, which was the last trading day before Musk declared he had purchased a majority stake in the company.
Once the transaction is complete, Twitter will become a privately held company.
Twitter CEO, Parag Agrawal, emphasized how impactful Twitter is as a social media platform and how proud he was of their work.
“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,” he said.
Twitter’s Independent Board Chair, Bret Taylor, said the board conducted a thoughtful and comprehensive awareness of Musk’s offer.
“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,” he said.
Musk is also the CEO of electronic car maker, Tesla, space exploration company, Space X, and infrastructure and tunnel construction services company, The Boring Company.
THE WHISTLER had reported that following the news that the sale was imminent, Twitter shares jumped more than 5%.
Musk had earlier announced that he had secured $46.5 billion in financing dedicated to his Twitter takeover bid, killing rumors that he would be unable to afford to buy the company.
The Tesla CEO revealed in a Securities and Exchange Commission (SEC) filing on Thursday that he had secured commitment letters to finance the deal, including debt commitment letters from Morgan Stanley as well as other unnamed financial institutions, and one equity letter from himself.
Although Musk is currently the richest person in the world, the majority of his wealth is tied up in Tesla stock.
The company had implemented a “poison pill” to prevent anyone from amassing more than a 15% stake in the company by allowing other shareholders to buy additional shares at a discounted price, in an attempt to thwart Musk’s takeover bid.
Musk had said, “Since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed into a private company.
“My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” he said in a letter to Twitter Chairman, Bret Taylor.