In a press release Monday afternoon, Twitter officially announced that it has entered into “a definitive agreement to be acquired by an entity wholly owned by Elon Musk.”
The deal, upon completion, is worth $44 billion and will turn the social media behemoth into a privately-held company, the release explains:
“Twitter, Inc. (NYSE: TWTR) today announced that it has entered into a definitive agreement to be acquired by an entity wholly owned by Elon Musk, for $54.20 per share in cash in a transaction valued at approximately $44 billion. Upon completion of the transaction, Twitter will become a privately held company.
“Under the terms of the agreement, Twitter stockholders will receive $54.20 in cash for each share of Twitter common stock that they own upon closing of 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 Mr. Musk disclosed his approximately 9% stake in Twitter.”
“I hope that even my worst critics remain on Twitter, because that is what free speech means,” Musk tweeted Monday, referencing his plan to put an end to unfair, politically-motivated censorship by Twitter of its users. Twitter users opposed to Musk's takeover have been posting threats to abandon the platform, objecting to his free-speech stance.
“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,” Musk said in a statement posted to his Twitter page and included in the press release.
Musk outlined some of the changes he’s looking to make to his new social media enterprise:
“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.”
While unanimously approved by Twitter’s board of directors, the purchase is still subject to the approval of Twitter stockholders, the receipt of applicable regulatory approvals and the satisfaction of other customary closing conditions, the release notes.