“I want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it,” Musk said in a statement.
He went on to add that 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.”
Parag Agrawal, Twitter’s CEO on his part said that Twitter has “a purpose and relevance that impacts the entire world.” He went on to add that he was proud of the company’s teams and was inspired by the work that “has never been more important.”
Under the terms of the agreement, Twitter stockholders will receive $54.20 in cash for each share of Twitter common stock that they own upon closing of the proposed transaction. The purchase price represents a 38% premium to Twitter’s closing stock price on April 1, 2022, which was the last trading day before Musk disclosed his approximately 9% stake in Twitter.
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“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing. The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders,” Bret Taylor, Twitter’s Independent Board Chair, said.
The transaction, which has been unanimously approved by the Twitter Board of Directors, is expected to close in 2022, subject to the approval of Twitter stockholders, the receipt of applicable regulatory approvals and the satisfaction of other customary closing conditions, the company said.
Further, the statement said Musk has secured $25.5 billion of fully committed debt and margin loan financing and is providing an approximately $21.0 billion equity commitment. “There are no financing conditions to the closing of the transaction,” it added.
Twitter also said that it plans to release its first quarter fiscal year 2022 results before market open on April 28, 2022. In light of the pending transaction, it said it will not hold a corresponding conference call.