On Monday (April 25), local time, The San Francisco-based Twitter company announced that it had reached a final agreement with Elon Musk.
Under the terms of the agreement, Musk will wholly acquire Twitter for $54.20 per share, totaling about $44 billion in cash. After the transaction is completed, Twitter will be turned into a privately held company.
The transaction received unanimous approval from Twitter's board of directors but still requires shareholder and regulatory approvals and is expected to close in 2022. Tweet Chairman Bret Taylor wrote, "The Board conducted a deliberate and comprehensive process to evaluate Elon's (Musk) proposal, focusing on the value, stability and financing aspects. ”
Upon completion of the transaction, shareholders received $54.20 in cash for every share they held, a 38 percent premium to the closing price on April 1. Taylor said, "The proposed deal brings a substantial cash premium, which we believe is the best path for Twitter shareholders." ”
Musk said Twitter is a digital town square where people discuss issues that are critical to the future of humanity, "and I want to enhance Twitter's product with a series of new features, such as open source algorithms to increase public trust, human-machine verification to solve the problem of fraudulent bots." ”
Musk said these potential new features could give Twitter users the best experience ever, reiterating the view he made when he launched the acquisition, "Twitter has tremendous potential." I look forward to working with companies and users to unlock this potential." ”
Parag Agrawal, CEO of Twitter, said: "Twitter companies have the mission and ability to impact the entire world. I am so proud of our team that I have never been more inspired by the important work I have now. ”
Thanks to the news, Twitter closed up 5.64% on Monday at $51.69 per share.
