On Monday, Twitter announced that Elon Musk had acquired the company for $54.20 per share, a price of $44 billion in a deal that will make him its largest shareholder. Following the closing, Twitter will become a private firm.
Elon Musk Aims to Enhance Free Speech and Unlock Twitter’s Potential
Tesla’s Elon Musk officially acquired Twitter on April 25, 2022, in a transaction valued at $44 billion. The deal came 21 days after Musk took a 9.2% stake in Twitter Inc. on April 4. The deal’s price of $54.20 per share would represent a 38 percent premium to Twitter’s closing price on April 1, the day before Elon Musk made his offer to buy the firm. Prior to Musk’s proposal, Twitter had no trading days left.
“The Twitter Board conducted a thorough and comprehensive evaluation of Elon’s offer, with a particular emphasis on value, certainty, and finance,” Bret Taylor, the company’s independent board chair stated during the acquisition.
“The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.”
Elon Musk also made a statement during the acquisition news on Monday, noting how important free speech is in society.
I’ll focus on three main areas: enhancing the product with new features, making Twitter’s algorithms open source to build trust, combatting spam bots, and authenticating all people. With its vast potential, I’m excited to work with the company and community of users to unlock it.
Furthermore, last week Musk explained how he wanted to improve Twitter by making the account verification process easier, and possibly implementing dogecoin payments. Since the news broke earlier this morning indicating that Musk was negotiating with Twitter, dogecoin prices have surged by 26.3% today. Following the acquisition announcement, DOGE added 10% to its total 24-hour percentage gains.