Video Producer: Shohini Bose
Video Editor: Mohd. Irshad Alam
Tesla CEO Elon Musk has struck a deal to fully acquire Twitter in a deal of about $44 billion. Once the deal is implemented, the social media network will be turned into a privately held company.
Twitter's stock jumped 5.7 percent at the news.
Current Twitter stockholders will receive $54.20 in cash for each share, which is a 38 percent premium as compared to the social media giant's share price earlier this month.
Musk took to Twitter to say that he hoped even his worst critics would remain on the platform.
The deal will be the largest that has been undertaken to take a company private in the last 20 years, according to Dealogic.
"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," Musk said in a statement released by Twitter.
What Did Parag Agrawal & Jack Dorsey Say?
Twitter CEO Parag Agrawal said in a tweet:
"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."Parag Agrawal, Twitter CEO
Twitter founder Jack Dorsey meanwhile said that Musk's goal is the right one and thanked him for getting the company out of an "impossible situation".
Financing the Deal
Musk had met with executives from Twitter on Sunday, as the company's board took a fresh look at his massive buyout offer. The company is "more open" to a deal than it had previously been, sources had earlier told Bloomberg.
According to filings, Musk has also formed three new holding companies to facilitate the purchase.
In a letter delivered to Twitter on 13 April, Musk had offered to buy all of its stock at $54.20 per share. The deal, which represents a premium of 38 percent over the closing price on 1 April, values the company at roughly $43 billion.
Previously, Musk owned a 9.2 percent stake worth around $3.3 billion. To buy the rest of Twitter at his offered price, he offered to pay $40 billion.
However, when he offered to buy Twitter, Musk didn't provide many details on how he would come up with the rest of the money, which is probably why Twitter's board wasn't too enthusiastic.
Later, on 21 April, Musk unveiled a fairly detailed $46.5 billion financing package, wooing shareholders who pressured the board to commence negotiations with the Tesla CEO, Reuters reported.
Apart from leading Tesla and SpaceX, Musk runs companies such as Neuralink and Boring Company. It remains to be seen how hands-on Musk intends to be at Twitter.
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