Twitter has just announced that it has “entered into a definitive agreement” with Elon Musk for a total value of approximately USD 44 billion. This is USD 54.20 per share in cash or a 38% premium over its closing stock price when its shares were last traded.
The sale makes Twitter wholly owned by Elon Musk. This means that after the sale is completed, the company will become private and will no longer have its shares traded on any stock exchange.
“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,” Musk said. “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 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 secured USD 25.5 billion of fully committed debt and margin loan financing and USD 21 billion of equity commitment to finance the purchase.