In the surprise unfolding of recent events, Twitter Inc. has finally accepted the offer of Elon Musk to sell the company for $44 billion. Twitter officially accepted the offer from Musk to come to final purchase terms.
The world’s richest man Elon Musk is making headlines for the last few weeks for his offer on Twitter purchase. 50-year-old Musk first made his interest to buy Twitter public in 2017. However, the road to finally getting hold of Twitter was not an easy feat.
According to the deal between Twitter Inc and Elon Musk, the company will turn into a private holding as per the settled terms. Elon shook the whole world with his coveted “best and final” offer to buy Twitter. In less than two weeks, Elon finally changed the history with the brand-new news from Twitter agreeing to sell.
Twitter-Musk Controversy
Twitter world was going berserk with the offer Musk put on the table to purchase the entire social media network. The legal team and shareholders got to work to find a way out. Even a Saudi prince holding a major stake in Twitter came out to point out that Musk would never get his hands on the ownership of Twitter.
Twitter came up with a poison pill maneuver to prevent Musk from acquiring more stake in the company. However, Musk threatened the entire Twitter fraternity to put a tender offer in counter and change the dynamics of the shareholder’s interests.
The poison pill might have given some leverage to Twitter Inc, but the company contemplated that they might lose their strong hand in negotiation with Musk if other shareholders came out in support of him. Furthermore, the tense situation led to Twitter commencing negotiation talks with Elon at the proposed $54.20 for every share.
What Is The Deal Between Musk And Twitter?
The final closure deal from Twitter now is going to eliminate public company stature and turn it into a private holding.
The huge buyout deal is expected to come to final closure by the end of this year. The recent condition o the terms of negotiation is playing in the favor of Musk. However, there are still several legal frameworks left to the work in making the purchase.
Shareholders of Twitter Inc will weigh their options, and countries Twitter has offices would need the due regulation to pan out.
For now, the whole situation seems like a good start for Elon Musk as the Twitter board of senior officials unanimously came out in support of the deal. Twitter is suggesting its shareholder too take the cue and come in the support of its decision.
What Does Musk Have To Say?
Elon Musk is ecstatic with the confirmation from the official Twitter statement confirming the deal. Musk made a statement following his succession bid to buy Twitter.
🚀💫♥️ Yesss!!! ♥️💫🚀 pic.twitter.com/0T9HzUHuh6
— Elon Musk (@elonmusk) April 25, 2022
Musk 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 spambots, 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 deal of the year is going to stay the highlight as many are not in terms with the idea of Musk having single-hand control over the entire social network of Twitter. Twitter is a powerful social media tool to alter the general perception powerfully with the powerful platform.
The Big Question Of How Musk Would Pay For The Purchase
Elon Musk is known for his witty sarcasm to represent his take on ordinary to even the pressing issues. Elon Musk has not made his plans open as to how he will be managing to do his $21 billion covers for the equity portion of the purchase agreement.
This is going to be a fun walk to see how Musk is going to make the purchase end with the new terms of buyout negotiations. It is worthy to note that Musk apparently has cash of about $3 billion only along with other liquid assets.
Can Musk Make Bring Change To Twitter?
Share of public holding Twitter would be delisted from the market this year before the final purchase. Musk has made it evidently clear that he has issues with the current functioning of Twitter. Therefore, the final takeover deal closure might be coming with immediate changes to Twitter as a business.
The news of the final purchase did increase the price of the share by a mere 5%. However, the price is still lower than the offer of $54.20 for every share by Musk. Many renowned financial firms believe that Musk is overpaying while making the purchase.
The interesting part is that Musk seems to be unaffected by how global financial institutions are taking the deal to be. He even quoted earlier that he does not care for the dynamics of economics.
What To Expect?
The recent dynamics of the deal are set to put the fire burning even higher. Many including the CEO of Twitter are not very much happy with the transition of ownership. However, the course is due to go in its course as Elon Musk has cleared his first hurdle to become the new ruler of the Twitter world after Tesla.
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