A deal has been reached between Elon Musk and Twitter over the purchase of the microblogging site. The price Musk will pay for the social network is about $44 billion, with each share valued at $54.20. Musk announced his takeover bid on April 14, describing it as his “best and last offer”.
Twitter’s independent board chair, Bret Taylor, released a statement saying, “The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing.”
Interestingly, Musk’s proposal originally resulted in Twitter implementing the so-called ‘poison pill defense’ against hostile takeovers. Musk, however, initiated talks with the board after he stated that he had raised funds.
The discussions reportedly escalated over the weekend after Musk wooed Twitter shareholders with the financial details of his offer. The firm, which went public in 2013, is expected to go private later this year, subject to Twitter shareholder and regulatory approvals.
Musk has committed to supporting free expression on Twitter, adding that he hopes even his harshest critics will stick around. He has also proposed adding an edit button, deleting advertisements for premium users, and increasing the platform’s authentication requirements.
“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. 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 spambots, and authenticating all humans,” Musk said in a statement.
While the information on Musk’s ambitions for Twitter is scarce, the transaction will definitely have a consequence on Twitter’s operations in India. India is a major market for social media companies like Twitter. As of January 2022, Twitter had 23.6 million users in India, and the nation is anticipated to be one of the company’s most important regions for development.
The takeover has also raised speculations about the change in the top leadership of Twitter. In the past Musk has openly shown his dissatisfaction with the management of the microblogging site. Twitter CEO Parag Agrawal and Chairman Bret Taylor assured staff on Monday that the social network will continue to operate normally until the company’s sale to Elon Musk is completed later this year.