Twitter will be bought by Elon Musk for $44 billion

Twitter announces that it has reached a definitive agreement with Elon Musk, which will pay US$ 54.20 in cash per share of the social network

The telenovela between Twitter and Elon Musk is nearing its final chapter. The social network announced this Monday (25) a deal with the billionaire. He will pay $54.20 per share of the company in cash, totaling about $44 billion. After the deal is concluded, the company will no longer be listed on the stock exchange. See this news also in stories format.

The purchase is expected to close in 2022. It is subject to shareholder approval, the green light from regulatory authorities and other customary conditions.

In a document filed on Thursday (21) with the SEC (the body responsible for regulating the US financial market), Musk said he had obtained US$ 25.5 billion in loans and US$ 21 billion in own resources. The statement made by the company repeats these numbers.

In an announcement published this Monday afternoon (25), Twitter says that shareholders will receive a 38% premium over the value of the shares, considering the share price on April 1. Musk already owns approximately 9% of the company.

Bret Taylor, chairman of Twitter’s independent board, highlights the added value investors will receive. “We believe this is the best path for shareholders.” Parag Agrawal, CEO of Twitter, says he’s proud of the teams and inspired by the work they’ve done.

In the same statement, Musk highlights freedom of expression, which he calls “the foundation of democracy”. “Twitter is the digital square where vital issues for the future of humanity are discussed”, said the new owner of the social network.

On Twitter, the billionaire said he hopes his critics will stay on the net, because “that’s what freedom of speech is all about.”

It promises to open-source the network’s algorithms, eliminate spam bots, authenticate all human users, and add features to the platform. “Twitter has tremendous potential — I want to work with the company and the user community to unlock that potential.”

How Musk went from shareholder to owner of everything

Earlier in April, a filing with the SEC revealed that Musk had purchased 73.5 million shares of Twitter , which corresponds to a 9.2% stake in the company.

Transactions were made gradually over months . For a few weeks, he was the company’s largest single shareholder, until investment fund firm Vanguard Group bought a bigger stake.

Initially, Musk was given a seat on the company’s board and supported an old demand from some users: a button to edit tweets .

Initially, Twitter’s management was opposed to the deal, including adopting a “poison pill” to dilute Musk’s stake if he tried to buy more shares. Therefore, the agreement of this second (25) is, in a way, surprising.

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