Elon Musk takes a bow after successful launch of SpaceX Crew Dragon Demo-2 mission. (GeekWire Photo / Kevin Lisota)
Elon Musk is buying Twitter.
The social media giant announced Monday via a press release that the SpaceX and Tesla chief will buy the company in cash for about $44 billion, or $54.20/share, a 38% premium to Twitter’s closing stock price on April 1.
“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. “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.”
Monday’s announcement follows a flurry of activity by the world’s richest person over the past month related to Twitter.
IT’S OFFICIAL: Twitter agrees to sell itself to Elon Musk for $44B, confirming @WSJ scoops
The mind-blowing timeline:
4/9 Musk backs out of joining board
4/14 Musk unveils bid
4/21 Musk details financing
4/24 Musk & Twitter meet
4/25 Deal announced https://t.co/AoRzbyZBJQ
— Cara Lombardo (@CaraRLombardo) April 25, 2022
Parag Agrawal, Twitter’s CEO who replaced Jack Dorsey late last year, provided a statement in the release. “Twitter has a purpose and relevance that impacts the entire world,” he said. “Deeply proud of our teams and inspired by the work that has never been more important.”
Musk’s purchase would be the largest deal ever to take a company private, The New York Times reported.
Soap opera over with Musk getting Twitter officially at $44 billion. Twitter Board could not find a white knight and Musk detailed financing last week forced them to the negotiation table. The Board was feeling pressure and given Twitter’s growth challenges this ends the saga
— Dan Ives (@DivesTech) April 25, 2022
“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing,” Bret Taylor, Twitter’s independent board chair, said in a statement. “The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.”
Musk has used Twitter to converse with Seattle-area tech titans Bill Gates and Jeff Bezos. On Friday Musk tweeted that he asked Gates if the Microsoft co-founder was short-selling shares of Tesla. Earlier this month Bezos responded to a tweet from Musk about converting Twitter’s headquarters into a homeless shelter.
Some more thoughts from folks below — from Twitter, of course.
This deal is dangerous for our democracy. Billionaires like Elon Musk play by a different set of rules than everyone else, accumulating power for their own gain. We need a wealth tax and strong rules to hold Big Tech accountable.
— Elizabeth Warren (@SenWarren) April 25, 2022
Taking a moment to think about how utterly crazy it is that in 2022 a company with a significant dataset of private and public communications, that has municipalities, companies and governments on the platform, can switch ownership with pretty much zero scrutiny
— emily bell (@emilybell) April 25, 2022
Things that must be true if Twitter’s board is ready to accept @elonmusk’s offer:
1) they did a soft market check and there were no other bidders.
2) @Jack is on board.
3) the pressure campaign worked.
— David Sacks (@DavidSacks) April 25, 2022
Source by www.geekwire.com