Twitter confirmed that it agreed to sell the company to billionaire entrepreneur Elon Musk for $44 billion Tuesday. Under the terms of the deal, shareholders will receive $54.20 in cash for every Twitter share they own, consistent with Musk’s original offering and marking a 38 percent premium to the share price the day before Musk discloses his stake in the company.
“The Twitter board undertook a thoughtful and comprehensive process to assess Elon’s proposal with a focus on value, certainty and financing,” Twitter independent board chairman Bret Taylor said in a statement.
He called the deal “the best way forward for Twitter shareholders.”
Musk has gone through a long journey to be able to buy the social media platform Twitter (TWTR). From criticizing, buying few shares, refusing to enter the board of directors to finally buying the company for $44 billion.
Previously, Elon Musk only bought 9.2 percent of Twitter shares and made it the largest individual shareholder. As part of the share purchase, he was asked to join the board of directors.
But he turned down the offer the same day he was offered. Even so, he still tweets about the potential for an overhaul on Twitter.
Long before this offer, Musk was convicted by the US Securities and Exchange Commission (SEC) of issuing a false and misleading tweet after declaring that he would buy all of Tesla’s shares worth US$420 in 2018.
Until in the end he decided to submit an offer to buy all the Twitter shares that he had not controlled.
According to filings with the SEC on Thursday (14/4), Musk offered to acquire shares in Twitter that he didn’t own for $54.20 per share.
“[Elon] made an offer to buy 100 percent of Twitter [shares] at $54.20 per share in a cash transaction and then make it private,” Forbes quoted him as saying.
Musk added that the $54.20 per share offer was his “best and last offer”. If not accepted, he will “reconsider” his position as the company’s largest shareholder.
The Tesla and SpaceX CEO, in the data filing, expressed confidence in Twitter’s potential to become a free speech platform and serve “urgent social needs”.
Based on SEC data, the offer was sent to the company on Wednesday (13/4) evening. With Musk’s offering, Twitter’s valuation is estimated at $43 billion.