American businessman, founder of Tesla Elon Musk has entered into a definitive agreement to acquire social network Twitter for $44 billion, the company said. Once the deal closes, Twitter will become a private company.
Under the terms of the agreement, shareholders of the social network will receive $54.20 per ordinary share. The premium was 38% of the share price at the close of trading on April 1, when Musk announced the acquisition of 9% on Twitter.
“The Twitter Board of Directors has taken a careful anda comprehensive assessment of Elon's proposal, focusing on cost, certainty, and funding. The proposed transaction will bring a significant cash bonus, and we believe it is the best path forward for Twitter shareholders,” Bret Taylor, Independent Twitter Chairman of the Board of Directors, commented on the transaction.
Commenting on the deal, Musk called Twitter a "digital town square" where vital questions about the future of humanity are discussed.
"I want to make Twitter better than ever,expanding it with new features, making algorithms open to increase trust, defeating spam bots, and authenticating all people. Twitter has huge potential - I look forward to working with this company, ”he wrote.
Twitter's board of directors unanimously approved the deal. It is expected to close in 2022, subject to shareholder approval and regulatory approvals.</p></p>