Elon Musk Set To Own Twitter For US$43 Billion
After weeks of speculations, Twitter (NYSE: TWTR) is finally close to accepting the “best and final” offer to buy the social media giant by Elon Musk. The Tesla chief offered to purchase all of the firm’s outstanding shares at US$54.20 per share in an all-cash deal, reportedly for a total consideration of US$43.0 billion.
According to people familiar with the matter, Twitter could announce the deal within the week after its board has decided on the matter. As always, until the deal has been inked, the sources say the arrangement could still fall through.
Two weeks ago, Musk made the offer to buy the rest of the firm’s shares and made a claim that should it be declined, he “would need to reconsider [his] position as a shareholder.”
Soon after, the social media firm’s board hastily adopted a shareholder rights plan that will limit any one entity or individual from acquiring in excess of a 15% stake in the company. Musk then considered the now pending tender offer to acquire shares in the company.
After the US$43-billion deal has been offered, Musk secured around US$46.5 billion in commitments for the potential acquisition.
The Twitter-Musk talk started when the billionaire bought a 9% stake in the company and became its largest single shareholder. Musk is an avid user of the social media platform and has long been criticized for democratizing his business decisions through tweets and public polls.
Twitter CEO Parag Agrawal announced that the board offered a seat to Musk which he later declined, presumably due to the background check requirement.
The Reublican wing of the House Judiciary Committee also expressed concern with the potential takeover of the social media firm, sending Twitter Chairman Bret Taylor a letter requesting the company to “preserve all records and materials relating to Musk’s offer to purchase Twitter, including Twitter’s consideration and response to this offer, and Twitter’s evaluation of its shareholder interests with respect to Musk’s offer.”
Twitter last traded at US$48.93 on the NYSE, then surged 5% pre-market.
Information for this briefing was found via Reuters and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.