It's Starting To Look Like Elon Musk Could Buy Twitter After All [Update: The Deal Is Done]
Twitter’s board has been considering Musk’s offer more seriously since he unveiled the financial package he put together to acquire the popular social network earlier last week. The board reportedly met on Sunday evening to discuss its options. The rumor caused Twitter’s stock price to go up by 4.5% as of Monday, April 25th.
Musk has secured $46.5 billion USD in financing through a mixture of loans and equity financing. He has received a $13 million loan from investment bank Morgan Stanley, loans worth $12 million from other banks, and has promised an equity commitment of $21 billion from himself. Twitter spokesperson Brenden Lee noted late last week that Twitter had received an “updated, nonbinding proposal.” He further remarked, “The Board is committed to conducting a careful, comprehensive and deliberate review to determine the course of action that it believes is in the best interest of the Company and all Twitter stockholders.”
Elon Musk offered to purchase Twitter for $41 billion USD earlier this month shortly after he acquired a 9.2% stock in the company. Musk plans to privatize Twitter and secure an “inclusive arena for free speech.” Musk’s proposal has overall been met with disdain by Twitter’s board to the point where it adopted a “poison pill” to prevent a “hostile” takeover. Musk has also been highly critical of Twitter’s board and has argued that the board does not have enough of a financial stake in the company to make the best decisions.
Update, 4/25/22 3:23 PM - It is now being widely reported that Musk's deal for Twitter will go through, as the company board has unanimously approved his $44 billion offer, making it one of the largest leveraged buyout deals in history to take the company private. TWTR investors will received $54.20 per share, the company announced in a statement today. “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,” noted Musk in a statement. “Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it,” proclaimed Musk.
Images courtesy of Twitter.