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15 hours ago the news headlines read that Elon Musk would be receiving the best and final offer for Twitter. Earlier this morning the news finally read, 'Elon Musk to buy Twitter Inc. for $44 billion.
On 4th April, Elon Musk disclosed his holding in Twitter Inc., over 9%, which made him the largest shareholder in the company. People were excited to see what kind of changes the world's richest man would bring to the company. After this disclosure, Mr. Musk was offered a position on the Board of Twitter, a job which he readily accepted, only to reject it 5 days later.
Mr. Musk had been building his stake in Twitter since the end of January 2022 and had accumulated 5% by March this year. He was supposed to inform the SEC of his holdings at this point but missed by 10 days. A shareholders lawsuit was triggered since his revelation caused the share to rally upwards, enabling the man to build wealth discreetly.
14th April was the day when the billionaire revealed his intentions to buy the company in a cash deal of $43 billion. The company responded by announcing a rights share to dilute Mr. Musk's stake. On 21st April, Elon Musk announced that he had managed to raise $46.5 billion via debt and equity financing. Following these disclosures, the Board held discussions with the Tesla founder, and a deal was reached on 25th April 2022.
The deal is an all-cash deal of $44 billion, valuing each share at $54.20. Musk has already proposed plans to take Twitter private along with several other ideas such as removing spam bots, improving speech restrictions on the platform, making the algorithm of Twitter open, and introducing an edit button. The deal is set to be completed later this year.
“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. I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spambots, and authenticating all humans. Twitter has tremendous potential - I look forward to working with the company and the community of users to unlock it,” Musk said in a press statement posted to his Twitter account.
The day Mr. Musk announced his stake, the stock jumped 25% and has been trading at such higher rates. The stock closed at $51.70 per share yesterday.
Article by Aman Agarwal.
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