Twitter Agrees to Elon Musk’s $44 Billion Takeover Bid
Written by Broad Admin on April 25, 2022
Twitter on Monday accepted Elon Musk’s offer to buy the company for roughly $44 billion.
This comes as the Tesla earlier this month offered to buy Twitter for $43 billion in cash after acquiring a 9.2% stake in the company. Twitter’s board of directors previously “unanimously adopted a limited duration shareholder rights plan” after the unsolicited offer from Musk this week to acquire the company.
“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,” Twitter CEO Parag Agrawal said in a statement.
Twitter’s board unanimously approved the transaction that is expected to close in 2022, subject to the approval of Twitter stockholders and regulators. Musk has secured $25.5 billion of fully committed debt and margin loan financing and is providing an approximately $21.0 billion equity commitment, the company said in a statement. The purchase price represents a 38% premium to Twitter’s closing stock price on April 1.
Bret Taylor, Twitter’s independent board chair, added, “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.”
Twitter’s board earlier this month approved plans for a rights plan in an attempt to fight Musk’s takeover of the company. Known as the “poison pill,” it is a tactic companies use in hostile takeovers to let it offer new shares or shares at a discount to other buyers and shareholders.