How Much Did Elon Musk Pay To Buy Twitter?
Twitter Inc. said today that it has reached a formal agreement to be bought by an entity controlled entirely by Elon Musk for $54.20 per share in cash in a $44 billion transaction.
Twitter will become a privately held firm after the acquisition is completed.
Twitter investors will get $54.20 in cash for each share of Twitter common stock they possess when the proposed deal closes, according to the terms of the agreement.
The purchase price is a 38 percent premium to Twitter’s closing stock price on April 1, 2022, the final trading day before Mr. Musk revealed his roughly 9% ownership in the company.
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 Agrawal, Twitter’s CEO, 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.”
The transaction, which has been unanimously authorized by the Twitter Board of Directors, is scheduled to close in 2022, subject to Twitter stockholder approval, regulatory clearances, and other standard closing conditions.
Mr. Musk has obtained $25.5 billion in fully committed debt and margin loan funding, as well as an equity commitment of $21.0 billion. The conclusion of the transaction is not subject to any financial conditions.