On April 25, local time, Twitter (TWTR.US) officially announced that it accepted Musk's privatization agreement.
Under the deal, Twitter will be acquired by an entity wholly owned by Musk for $54.20 per share in cash, a transaction valued at about $44 billion. Upon completion of the transaction, Twitter will become a privately held company.
The transaction has received unanimous approval from Twitter's board of directors and is expected to close in 2022, provided that Twitter shareholders are granted and applicable regulatory approvals are met, and other regular closing conditions are met.
Upon completion of the proposed deal, Twitter's shareholders would receive $54.20 per share in cash. The purchase price was a 38 percent premium to Twitter's closing price on April 1, the last trading day before Musk disclosed his stake in Twitter.
However, after the news of Musk's proposed acquisition of Twitter, Twitter's stock price began to rise sharply, as of the close of Eastern Time on Monday, the latest price is $51.7 / share, the latest market value is $39.5 billion, and the current premium on Musk's price is only 4.8%.
Twitter Board Chairman official announcement.
Bret Taylor, chairman of Twitter's board of directors, said, "Twitter's board conducted a well-thought-out and comprehensive assessment to evaluate Elon's proposal, focusing on value, certainty and financing. The proposed deal would result in a substantial cash premium, which we believe is the best way out for Twitter shareholders. ”
Musk has secured $25.5 billion in full debt and margin loan financing and provided about $21 billion in equity commitments. There are no financing conditions for the completion of the transaction.
Twitter CEO Parag Agrawal said, "Twitter has a purpose and relevance that affects the whole world, and I am very proud of our team. ”
It is worth mentioning that not long ago, Twitter's board was considering taking a measure to help the company resist the acquisition, including diluting the interests of "enemy" through the "poison pill plan", that is, allowing existing shareholders to buy more shares at a discounted price.
In just a few days, the reversal took place.
Musk first tweeted. Source: Musk Tweet
After the official announcement of the news, Musk expressed his joy on Twitter for the first time, and was equipped with emoji such as love and rockets.
As a tweeter with more than 80 million followers, Musk is a loyal user of Twitter and one of the most influential users. Musk began using Twitter in 2009, posting more than a dozen times a day when updates are frequent, and almost every tweet has tens of thousands of likes.
Musk said, "Twitter is a digital city square where issues that are vital to the future of humanity are discussed." ”
As for the post-acquisition arrangement, Musk said he would enhance the product by adding new features, making the algorithm open source to increase trust, combat spam bots, and authenticating all humans, making Twitter better than ever.
"Twitter has tremendous potential — and I look forward to working with the company and the user community to unleash its potential." Musk said.