Elon Musk has struck a $44 billion deal for social media platform Twitter
Twitter is likely to become a privately owned firm under Elon Musk’s leadership, with new features and services.
Twitter, a major social media network, said on Monday that it has signed a formal agreement to be bought for $44 billion by a company controlled entirely by Elon Musk.
Shareholders would get $54.20 in cash for each share of common stock they possess in the transaction, according to a statement from Twitter.
Twitter’s Board of Directors has unanimously authorised the acquisition, which is likely to conclude later this year, subject to shareholder approval.
After the sale closes, Twitter is anticipated to become a private corporation, ending its nine-year stint on the New York Stock Exchange.
As of April 1, when Musk revealed his final 9% ownership in Twitter, the purchase price is 38% more than the stock’s closing price on that day.
According to the press announcement, Musk has obtained $25.5 billion in fully committed debt and margin loan financing and has committed about $21.0 billion in equity.
Many in the crypto community have commended or decried Twitter’s content filtering, freedom of expression (or lack thereof), and user anonymity.
Musk, whose net worth is estimated at $268 billion by Forbes, said he intended to enhance Twitter by introducing new features, providing an open-source algorithm for the network, and combating its spambots. Musk’s net worth is estimated at $268 billion, according to Forbes.
When it comes to debating topics that are critical to humanity’s future in an open and free forum, Musk believes that Twitter serves as the perfect place for this.
To increase income and recuperate some of Musk’s original investment, the platform may potentially be redesigned to be subscription-based, according to Reuters.
It remains to be seen whether this would placate the crypto community or lead people to look for alternatives. The price of Dogecoin has risen and fallen wildly because of Musk’s Twitter thoughts on crypto, notably his tweets regarding Dogecoin’s value.
Dogecoin payments on Tesla’s online store were operational in January for a limited number of products. At the time, Doge’s price surged by more than 17% in a single day.
Two months after Musk declared through Twitter that Tesla will take bitcoin as payment for automobiles after a purchase of $1.5 billion worth of bitcoin in March, Musk reneged on his promise, citing environmental concerns.
Both times, the price of bitcoin rose 48 percent in response to Musk’s comments and then fell 40 percent two months later.