(CelebrityAccess) — Twitter announced it has agreed to a deal with the world’s richest man, Elon Music, who will buy the social media platform for $44 billion in cash.
Under the terms of the agreement, Twitter stockholders will receive $54.20 in cash for each share of Twitter common stock that they own upon closing of the proposed transaction.
The proposed purchase price for the social media platform represents a 38% premium to Twitter’s closing stock price on April 1, 2022, which was the last trading day before Mr. Musk disclosed his approximately 9% stake in Twitter.
According to Twitter, the company’s board of directors have already approved the deal, which is expected to close in 2022, pending the approval of the company’s shareholders and anti-trust regulators.
The New York Times is reporting that those regulators may examine the deal but at present, are unlikely to take steps to block its completion.
“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing. The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders,” said Bret Taylor, Twitter’s Independent Board Chair.
“Twitter has a purpose and relevance that impacts the entire world. Deeply proud of our teams and inspired by the work that has never been more important,” added Parag Agrawal, Twitter’s CEO.
According to Musk, he plans to expand Twitter with new features with an eye towards combating the use of bots and fake accounts on the platform.
“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” said Mr. Musk. “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”