Elon Musk is officially buying Twitter.
On April 14, 2022, Elon Musk announced his intention to acquire the social media company, and that he is making an offer. Today, it has been officially announced that Twitter has accepted the bid of USD44 billion.
As stated in a press release by Twitter, the company has “entered into a definitive agreement to be acquired by an entity wholly owned by Elon Musk”.
Here’s what we know about Elon Musk buying Twitter:
According to the terms of the agreement, Twitter stockholders will receive USD54.20 in cash for each share of Twitter common stock that they own upon closing the proposed transaction. The purchase price represents a 38% premium to Twitter’s closing stock price on April 1, 2022, which was the last trading day before Elon Musk disclosed his approximately 9% stake in Twitter.
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.”
Elon Musk also made a statement in the press release regarding his intentions upon acquiring Twitter. He 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 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.”
The transaction, which was unanimously approved by the Twitter Board of Directors, is expected to close in 2022. However, it will be subject to the approval of Twitter stockholders, the receipt of applicable regulatory approvals and the satisfaction of other customary closing conditions.
How will Twitter change under the acquisition?
If our twitter bid succeeds, we will defeat the spam bots or die trying!
— Elon Musk (@elonmusk) April 21, 2022
Social media users are wondering just how Twitter will change once Elon Musk has officially bought the company. However, despite his plans to make Twitter “better than ever”, it may take some time for users to see any major changes on the social media platform.
According to the Washington Post, the deal still needs to be finalized in a lengthy process that could take weeks or months. Additionally, Musk is required to notify regulators at the Federal Trade Commission and Justice Department about his plans to buy Twitter under federal law. If regulators decide to review the deal, the closing of the purchase could be delayed.
That being said, Elon Musk has plans to take Twitter private. He said in a filing with the Securities and Exchange Commission that “since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.”
Featured and Hero image credit: OLIVIER DOULIERY / AFP
This story first appeared on Prestige Malaysia