Twitter has accepted Elon Musk's $44 billion bid to buy the firm, the company stated today in a press release. Musk paid $54.20 per share for the company, which was the same price he offered on April 14th.
"Free speech is the backbone of a functional democracy, and Twitter is the digital town square where important issues affecting humanity's future are debated," Musk said in a statement accompanying the announcement. "I also want to make Twitter better than it has ever been by adding new features, opening up the algorithms to boost trust, combating spam bots, and authenticating all humans."
In the press announcement, Twitter CEO Parag Agrawal praised the deal as well. In an accompanying statement, Agrawal said, "Twitter has a purpose and relevance that touches the entire globe." "We are extremely proud of our teams and motivated by work that has never been more critical."
In an SEC filing on Thursday, Musk outlined his finance strategy, which includes $25.5 billion in loans and $21 billion in personal equity. According to analysts, the loans might cost Twitter up to $1 billion per year in servicing expenses, or nearly 20% of its annual income.
Twitter's board enacted a "poison pill" tactic shortly after Musk disclosed the buyout plan, implying that it intended to reject Musk's buyout. The reason for the company's change of heart is unknown. According to a New York Times report published Monday, Twitter employees are divided at the announcement, with little information about the continuing talks.
It's unclear how Musk will affect Twitter or where he'll begin making changes. He surveyed Twitter users on the construction of a "edit" button, which Twitter was already building, when he initially revealed his 9.2 percent ownership in the company. Later, he proposed removing Twitter Blue's advertisements, cutting the subscription price, and adding Dogecoin as a payment option.
Musk has been vocal about his dissatisfaction with Twitter moderation, identifying himself as a "free speech absolutist" and raising concerns about how the platform might moderate under his leadership. In an interview with Chris Anderson at TED 2022, Musk remarked, "It's just incredibly vital that people have the reality and the idea that they can speak freely within the confines of the law." "I believe that the greater the faith in Twitter as a public platform, the lower the civilizational risk."
On April 14th, Musk made an offer to buy Twitter for $54.20 per share. The offer came after Musk revealed that he had purchased a 9.2 percent interest in Twitter, making him the company's largest individual shareholder at the time. Musk was once given a place on Twitter's board of directors, but the transaction fell through since a seat on the board would restrict him from purchasing more than a 14.9 percent share in the firm.
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