International news sites reported on Monday that Elon Musk, the founder of Tesla, had formally accepted Twitter’s $44 billion acquisition deal.
Shortly after the announcement that Twitter trade had been suspended, the social media company issued a press statement indicating that it had accepted Musk’s offer to take the social network private.
“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,” Twitter’s Independent Board Chair Bret Taylor told reporters.
According to the press announcement, the cash offer for $54.20 per share is worth approx $44 billion. Twitter will become a private corporation once the transaction is completed. The news puts an end to a saga that began when Musk hinted at a large investment in the company. Soon after, Twitter declared that Tesla CEO Elon Musk would join the board of directors, only for Musk to retract his statement a few days later. Later, he made his “best and last” offer to buy Twitter for $54.20 per share, valuing the company at about $43 billion.
In a statement included in Twitter’s press release, Elon Musk said, “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 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”.