Elon Musk, owner of Tesla Motors and SpaceX, and the richest man in the world bought the social network Twitter for 44 billion dollars.
Twitter announced last night(April 25th) that it has accepted Mask’s offer.
“Twitter confirms that it has reached a definite agreement on the sale. The company will be fully acquired by the entity owned by Elon Musk for $54.20 per share. The transaction is estimated at about $44 billion.”
Once the transaction is completed, Twitter will become a private company,” Twitter announced last night.
The share price is 38% higher than the stock price
“Twitter shareholders will, in accordance with the agreement reached, receive $52.20 for each Twitter share they own at the time of the agreed transaction.
The purchase price is 38% higher than the stock price of Twitter shares on April 1, 2022, the last day of stock trading before Mr. Musk announced that he had bought a stake of about 9% on Twitter.”, the company said in a statement.
Musk thus became the owner of the platform, which he considers “a public digital place where vital contents for humanity will be discussed”, it is stated in the announcement.
“Freedom of speech is the foundation of democracy,” Musk said.
The mask started to be taken over at the beginning of April
Elon Musk bought 9.2% of Twitter in early April.
Following this announcement, the value of Twitter shares rose by more than 25%.
Mask has become one of the company’s largest shareholders and now owns four times as many shares as Twitter founder Jack Dorsey.
Dorsey’s share is 2.25%.
“Twitter must become a private company”
A week after buying the shares, Musk made an offer to buy Twitter and said that in case his offer was not accepted, he would “consider his position as a shareholder”.
“I decided to invest in Twitter because I believe in its potential to be a platform for freedom of speech around the world, and I believe that freedom of speech is a social imperative for a functioning democracy,” Musk wrote in a statement to the financial regulator.
“However, after I invested, I realized that the company in its current form will neither progress nor serve this social imperative.
Twitter must become a private company. He has huge potential, and I will release it.”, he added.
It has more than 80 million followers on Twitter
Mask is one of the most popular Twitter users, with more than 80 million followers.
He often publishes details about his companies, which is why he has been accused of manipulating the market on several occasions, and several investigations have been launched against him.
In the weeks before he took over 9% of the shares, Musk posted about Twitter and the algorithms that drive the platform.
On March 24, he wrote that he was concerned about de facto bias in an algorithm that has a major impact on public discourse and shared a poll urging his followers to vote on whether the algorithm should be open source.