By John Meyer, financial consultant – Eurasia Business News, April 25, 2022
US entrepreneur Elon Musk and the leadership of the social network Twitter reached an agreement on the sale of the social media service to the CEO of Tesla and SpaceX for $ 44 billion, reported CNN Business, citing a statement from the company.
“Twitter has tremendous potential, and I look forward to working with the company and the user community to uncover it,” said Musk when announcing the deal.
The head of the board of directors of Twitter, Bret Taylor, for his part, wrote on Twitter that the company carefully evaluated Musk’s proposal and considered the decision “the best way forward for Twitter shareholders.”
The deal, which was unanimously approved by Twitter’s board, is expected to close this year.
Musk made an offer to buy Twitter on April 14, valuing the company at $54.2 per share, or $43.39 billion overall. Then the tech magnate said that this proposal is “the best and last”, and, according to sources, confirmed in a conversation with the head of the board of directors of the company Bret Taylor that he did not intend to raise the offer.
Twitter was expected to reject Musk’s proposal, since on April 15, the company’s board of directors agreed on an additionnal issue of shares as a protection against a takeover initiated by the billionaire.
However, last week Elon Musk, who already owns a 9.2% stake in Twitter, said that he has $ 46.5 billion to fund the transaction and that he is ready to make an offer for a direct buyback of securities from shareholders. After that, the position of Twitter executives changed, and they agreed to negotiations with Musk.
The billionaire explains his desire to buy Twitter by his plan to make the social network a “platform for freedom of speech” around the world.
On April 20, Elon Musk intended to spend from $ 10 billion to $ 15 billion of personal funds to buy Twitter Inc., some sources reported to The New York Post.
Twitter shares rose by 27% over the past month, at the close of the market on Friday, their value was $ 48.93. Now the Twitter stock price is $ 51.69.
Update to come.
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