Last week, Elon Musk said that he wanted to buy all of Twitter and take it off the stock market. At first, it looked like the company would politely (or not so politely) say no. However, a few days later, it looks like it did some more thinking, and today it said that it will accept Musk’s offer.
In a deal worth $44 billion, Elon Musk, the world’s richest man, acquired control of the social media platform used by millions of people and many international leaders.
For the 16-year-old company, which has grown to be one of the world’s biggest social media platforms, this is a turning point. The company now faces different challenges.
Musk himself has talked about making the service more user-friendly, like adding an “edit” button and stopping “spambots” that send a lot of spam tweets.
The deal’s prospects improved over the weekend as Musk wooed Twitter shareholders with specifics of his offer’s funding. Twitter began talks with Musk to buy the company for $54.20 per share after being pressured into it.
On Monday, Twitter shares rose 5.7% to close at $51.70. The deal is almost 40% more than the closing price on the day before Musk said he had bought more than 9% of the company.
“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”, he continued.
Musk has gotten $25.5 billion in “fully committed debt and margin loan financing,” and he’s also using about $21 billion of his own money to pay for the deal.