Elon Musk emerges victorious in his highly contested $44 billion (£35 billion) takeover battle for Twitter. The social media platform has now dropped its resistance to the bid put forward by the Tesla billionaire.
As the world’s wealthiest individual, Musk has pledged to not only acquire Twitter but to also “elevate it to new heights” while safeguarding its position as the “digital epicenter where crucial discussions concerning humanity’s future take place.”
Twitter’s board has formally announced its unanimous acceptance of Musk’s offer of $54.20 per share, arriving 11 days subsequent to the initial announcement. Interestingly, just over a week ago, Twitter had implemented a “poison pill” defense mechanism to prevent Musk, who currently owns 9.1% of the company, from acquiring the social media giant.
Upon completion, this transaction will transform Twitter from a publicly-held entity into a privately-owned one, with Musk becoming its sole proprietor. Twitter anticipates finalizing the deal later this year, but it still necessitates approval from both shareholders and regulatory bodies.
Asserting the significance of free speech in a functional democracy, Musk stated, “Twitter represents the digital mecca where crucial matters pertaining to the future of humanity are extensively debated. My objective is to amplify Twitter’s core functionality through innovative features, open sourcing its algorithms to enhance trust, quelling spam bots, and validating all human users. Twitter possesses immense potential, and I am enthusiastic about collaborating with the company and its user community to unlock it.”
Bret Taylor, Chairman of Twitter, maintains that this deal is the most advantageous option available to the company’s shareholders, even though it values Twitter considerably lower than its share price for a significant portion of last year.
Taylor explained, “The Twitter Board has meticulously assessed Elon’s proposal, focusing intently on factors such as value, certainty, and financing. The proposed transaction will grant our stockholders a substantial cash premium, and we firmly believe that it charts the optimal course for Twitter’s future.”
In light of the acquisition, Twitter has temporarily banned employees from implementing any changes to its platform, as reported by Bloomberg. Consequently, product modifications will necessitate approval from a vice president to prevent dissatisfied staff members from acting against the deal’s interests.
Parag Agrawal, who assumed the position of Twitter’s CEO after the departure of founder Jack Dorsey last year, now faces an uncertain future regarding his role. Musk has openly expressed his lack of faith in the company’s management, although the announcement does not specify the fate of its executives.
Mr. Agrawal commented, “Twitter holds a purpose and relevance that resonates with the entire globe. I am immensely proud of our teams and inspired by their work, which has never been more significant.”
Shares in Twitter experienced a 5.5% surge earlier today following reports that the company’s directors were close to finalizing their agreement on Musk’s proposal.
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