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Elon Musk acquires Twitter in a deal worth $44bn

The firm made it official in a press release late Monday

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Elon Musk acquires Twitter in a deal worth $44bn

Twitter has accepted Elon Musk’s bid to purchase the social media firm for a whopping $44 billion, the firm late Monday announced in a press release. Musk paid $54.20 per share to buy the social media firm, the same amount that he had initially offered earlier on the 14th of the ongoing month.

Musk’s statement accompanying the release states, “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 further stated, “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.”

Bret Taylor, Twitter’s Independent Board Chair, said, “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.”

Parag Agarwal, the CEO of Twitter welcomed the deal with applause. In an accompanying statement to the announcement, Agarwal said, “Twitter has a purpose and relevance that impacts the entire world. Deeply proud of our teams and inspired by the work that has never been more important.”

Elon Musk’s takeover bid to purchase Twitter was made earlier this month. The social networking business anticipated to reject of a proposal and took a step dubbed the “poison pill” to stave off a potential hostile acquisition.

However, Musk detailed his financial strategy for the transaction in an SEC filing on Friday, including $25 billion in loans and $22 billion in personal equity. After which Twitter became more amenable to an offer.

As of now, it’s unknown what influence Musk will have on Twitter, or where and how he’ll begin making the changes. However, earlier when he originally revealed his 9.2% ownership of Twitter, he shared a poll asking Twitter users about the establishment of an “Edit” button. Later, he proposed removing adverts from Twitter Blue, decreasing the subscription fee. Moreover, he also proposed introducing a new payment option in the form of a cryptocurrency dubbed Dogecoin.

However, finally, after the continuing plays of “will-be” and “won’t-be,” Elon Musk acquires Twitter.

Elon Musk, the CEO of Tesla and SpaceX, has been aggressive in his pursuit to acquire the social media business. Musk, earlier this month had made an offer to purchase Twitter for $54.20 per share, just after revealing his acquisition of a 9.2% stake in the company. He became the largest shareholder at the time and was offered a directorial position on the company’s board. However, Musk laid down the offer as it would’ve restricted him from purchasing more than 14.9% of the company’s shares.  

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