Musk declines Twitter board seat, sparking rumors of a hostile takeover

Elon Musk seals his Twitter deal

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Twitter, Inc. right now introduced that it has entered right into a definitive settlement to be acquired by an entity wholly owned by Elon Musk for $54.20 per share in money in a transaction valued at roughly $44 billion. Upon completion of the transaction, Twitter will turn into a privately held firm.

Elon Musk has accomplished his activity of shopping for one of many greatest social media corporations on this planet. What he will do with it stays a thriller. Listed below are the main points as laid out by PR Newswire:

Beneath the phrases of the settlement, Twitter stockholders will obtain $54.20 in money for every share of Twitter frequent inventory that they personal upon closing of the proposed transaction. The acquisition worth represents a 38% premium to Twitter’s closing inventory worth on April 1, 2022, which was the final buying and selling day earlier than Mr. Musk disclosed his roughly 9% stake in Twitter.

Bret Taylor, Twitter’s Impartial Board Chair, mentioned, “The Twitter Board carried out a considerate and complete course of to evaluate Elon’s proposal with a deliberate give attention to worth, certainty, and financing. The proposed transaction will ship a considerable money premium, and we imagine it’s the greatest path ahead for Twitter’s stockholders.”

Parag Agrawal, Twitter’s CEO, mentioned, “Twitter has a goal and relevance that impacts all the world. Deeply pleased with our groups and impressed by the work that has by no means been extra vital.”

“Free speech is the bedrock of a functioning democracy, and Twitter is the digital city sq. the place issues very important to the way forward for humanity are debated,” mentioned Mr. Musk. “I additionally wish to make Twitter higher than ever by enhancing the product with new options, making the algorithms open supply to extend belief, defeating the spam bots, and authenticating all people. Twitter has super potential – I stay up for working with the corporate and the group of customers to unlock it.”

Transaction Phrases and Financing
The transaction, which has been unanimously authorized by the Twitter Board of Administrators, is anticipated to shut in 2022, topic to the approval of Twitter stockholders, the receipt of relevant regulatory approvals and the satisfaction of different customary closing situations.

Mr. Musk has secured $25.5 billion of totally dedicated debt and margin mortgage financing and is offering an roughly $21.0 billion fairness dedication. There aren’t any financing situations to the closing of the transaction.

PR Newswire

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