On Monday, local time, Twitter announced that it accepted Musk's privatization proposal, agreeing to the latter's acquisition for $44 billion. Subsequently, Musk forwarded the relevant statement on the platform, accompanied by the text "Yesss!!!" with the text. It is reported that Musk will complete the transaction by directly paying $21 billion and $25.5 billion in financing, which is expected to be completed within 2022.
In response, Bret Taylor, Independent Chairman of Twitter, said, "Twitter's board of directors conducted a thoughtful and comprehensive assessment of Musk's proposal, with a prudent and timely focus on value, certainty and financing. The proposed deal will result in a substantial cash premium, which we believe is the best way forward for Twitter shareholders." It is reported that this will be one of the largest corporate privatization transactions in nearly 20 years. ”
Previously, on April 14, Musk had issued a buyout proposal to Twitter, planning to buy the latter for $54.20 per share, saying that it was the best price and his last bid. As it turned out, Twitter ultimately chose to accept the offer as well. The purchase price is reported to represent a 38% premium to the company's stock price before the close of trading on April 1, 2022 (the previous transaction in which Musk publicly bought Twitter's stock count).
On April 4, Musk disclosed that he held 9.2% of Twitter shares. Twitter then invited Musk to join its board of directors as a second-tier director until 2024, but required the latter not to hold more than 14.9% of the shares. But Musk changed his mind after accepting the invitation, refusing to join the company's board of directors and issuing a takeover offer to him on April 14.
In fact, before announcing its acceptance of the acquisition proposal, Twitter had launched the "poison pill plan", when Musk's acquisition proposal was regarded as a hostile takeover of the company. The plan limits the trigger for a "poison pill plan" when outside ownership of Twitter reaches 15 percent, when the company will allow shareholders to buy more additional shares at a discounted price to dilute all of the acquirer's shares and increase the cost of acquisition.
In terms of personnel changes that may be caused by the acquisition transaction, Twitter CEO Agravar revealed that there are no layoffs planned at present and will serve as CEO until the end of the transaction, but at the same time he also revealed that "there is indeed uncertainty about what will happen after the transaction is completed." According to sources, if Agravar is fired within 12 months of Twitter's change of control, he could receive about $42 million in compensation. And it is worth noting that on April 14, Musk had previously said that he was not optimistic about Twitter's current management.
It is understood that Musk currently owns Tesla, SpaceX, Neuralink, Boring Company and many other companies. According to forbes' 2022 list of global billionaires released earlier this month, Musk became the world's richest man with a net worth of $219 billion.
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