Shareholders’ Interest Informs Twitter Sale – Board

The Twitter Board of Directors stated on Monday that, in the best interests of the microblogging platform’s stockholders, it has signed into a definitive deal to be bought by a corporation wholly owned by billionaire industrialist Elon Musk.

Twitter will become a privately held corporation after the purchase is completed for $54.20 per share in cash in a transaction valued at around $44 billion.

Stockholders will get $54.20 in cash for each share of Twitter common stock they own when the proposed transaction closes, according to the terms of the agreement.

The acquisition price is 38% higher than Twitter’s closing stock price on April 1, the last trading day before Musk announced his approximately 9% ownership in the company.

Bret Taylor, Twitter’s Independent Board Chair, said, “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.”

Parag Agrawal, Twitter’s CEO, said, “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.”

READ ALSO: Lagos State In Talks With Google, Facebook To Establish Biggest Tech Hub in West Africa

In a statement announcing the deal, Musk said, “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.

“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 spambots, and authenticating all humans.

“Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”

The transaction, which has received unanimous board approval, is expected to close in 2022, subject to Twitter stockholder approval, regulatory clearances, and other standard closing conditions.

Musk has obtained $25.5 billion in fully committed debt and margin loan funding, as well as an equity commitment of $21.0 billion. The conclusion of the transaction is not subject to any financial conditions.

Leave a Reply