Elon Musk emerges victorious in his $44 billion (£35 billion) takeover bid for Twitter as the social media platform withdraws its opposition. As the world’s wealthiest individual, Musk pledges to improve Twitter and protect it as a “digital town square” for important debates concerning humanity’s future. The Twitter board unanimously accepts Musk’s offer of $54.20 per share, just 11 days after its announcement. This move comes shortly after Twitter implemented a “poison pill” defense mechanism to prevent Musk, 50, from acquiring the company. The deal entails Twitter transforming from a publicly-held entity to a privately-held one, with Musk becoming its sole proprietor, given his existing 9.1% ownership. Although the deal is expected to close this year, it still requires the approval of shareholders and regulators.
Expressing his vision, Musk states, “Free speech is the foundation of a functioning democracy, and Twitter serves as the digital town square for vital debates that shape our future. My objective is to enhance Twitter by introducing new features, open-sourcing the algorithms to foster trust, combatting spam bots, and verifying user authenticity. Twitter possesses tremendous potential, and I eagerly anticipate collaborating with the company and its user community to unlock it.”
Bret Taylor, Chairman of Twitter, appraises the deal as the most favorable outcome for the company’s shareholders, despite its valuation falling below the share price for a significant portion of the previous year. He remarks, “The Twitter Board carefully evaluated Elon’s proposal, focusing on value, certainty, and financing. The proposed transaction provides substantial cash premiums, representing the optimal path forward for Twitter shareholders.”
Following the acquisition, Twitter enforces a temporary ban on employee alterations to the platform to prevent any unauthorized actions from disgruntled staff members. Any product changes necessitate approval from a vice president to deter employees from “going rogue” due to discontent with the deal, according to Bloomberg reports. Parag Agrawal, who assumed the role of Twitter’s CEO after founder Jack Dorsey’s departure last year, experiences uncertainty regarding his position. Musk has expressed doubts about the company’s management, yet the announcement does not disclose the fate of its executives.
“Twitter bears global significance and relevance. I am immensely proud of our teams and inspired by the work that has never been more vital,” asserts Mr. Agrawal.
Reports of the Twitter board nearing an agreement on Musk’s offer led to a 5.5% surge in Twitter’s shares earlier on Monday.
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