On Monday, April 25, EST, Twitter's board of directors announced a final agreement agreeing that Tesla CEO Musk would buy Twitter for $54.2 per share in cash, valuing Twitter at about $44 billion. Trading on TWTR shares is suspended intraday. After the transaction closes, Twitter will become a privately held company.
Billionaire entrepreneur Elon Musk has agreed to buy Twitter Inc. for $44 billion to take the 16-year-old social networking platform private, one of the largest leveraged buyout deals in history. Twitter has become a center of public discussion and also a webcast. discuss. self. composed. A hot topic of debate.
(Photo: Foxbusiness)
The company said in a statement Monday that investors would receive $54.20 for every share of Twitter stock they hold. That price is 38 percent higher than the closing price on April 1.
After Musk deleted his Facebook account that year, he used Twitter as the only app for news status releases. Musk is one of Twitter's most followed users, with more than 83 million followers, amassing about 9 percent of its stake since January.
By March, he had stepped up his criticism of Twitter, claiming that the company's algorithms were biased and that the stream of information was filled with automatic spam posts. He also said Twitter's user growth was exaggerated by bots. After declining an invitation to join the company's board of directors, he proposed taking Twitter private on April 14, saying he would make the platform a speech. discuss. self. by the fortress and hinting at the changes he will make as the owner.
What changes will Musk bring to Twitter?
For example, let users edit tweets to curb the spread of bots. And a proposal was made to turn the company's San Francisco headquarters into a shelter for the homeless.
A man who changes the world all the time thinks about the meaning of Twitter's existence from the perspective of human civilization. Musk said in Monday's statement: "Words. discuss. self. Made up of the cornerstone of Democracy's operations, Twitter is the digital plaza for debating issues that are vital to the future of humanity. "Twitter has tremendous potential — and I look forward to working with the company and the user community to unlock it."
Where does Musk's money come from?
The deal was unanimously approved by the company's board of directors and is expected to close later this year. According to the statement, Musk received $25.5 billion in debt and margin loan financing and will provide about $21 billion in equity to fund the deal. Although Musk is the world's richest man, most of his assets are tesla shares.
In this transaction, Goldman Sachs, JPMorgan Chase and Allen & Co. are Twitter's financial advisers, Morgan Stanley is Musk's chief financial adviser, and Bank of America and Barclays are also Musk's financial advisers.
Twitter's growth path
For the company, privatization marks a dramatic shift. The company started out as a messaging service that shared status updates with friends, but quickly evolved into a way for people to post short posts of 140 characters or less to the public. Twitter caused a stir among politicians, celebrities and journalists, and along with Facebook and YouTube, the backbone of social media, became a new, more interactive way to use the web (later known as web 2.0).
Since its inception in 2006, the company has experienced a series of crises, including a management upheaval that led to co-founder Jack Dorsey being removed early on Twitter and eventually returning in 2015. After an initial public offering in 2013, the company considered selling itself in 2016, attracting interest from companies ranging from Walt Disney to Salesforce Inc. Dorsey had a dispute with an activist investor in 2020 who forced Twitter to set specific growth targets and added greater board responsibility. This prompted Dorsey to eventually leave for the second time so he could focus on his other company, digital payments company Block Inc. Codename SQ.
Is it still worth investing in Twitter?
Today, we shared in the Vip community that Musk and Twitter are valued at $44 billion. It is estimated that the acquisition news will be announced after the close of the market today.
The outside world speculates that the reason why Twitter is so anxious to sell itself is likely to be to announce the results after hours on Thursday, and the performance data is not very good, which will lead to a sharp decline in the stock price, and then Ma Zong may withdraw the acquisition.
So Twitter's board of directors worked overtime over the weekend to make a meticulous and comprehensive assessment of Musk's proposal, with a particular focus on valuation, certainty and financing. Hopefully, the transaction will be closed before the earnings report is announced.
Now the stock price closes at 51.9, the purchase price is a few more pieces, there is no profit, it is not worth the risk.