Kul Bhushan · · 1 min readTwitter agrees to Elon Musk’s $44b takeover bid (Updated)
Update (Apr. 26, 9:00 a.m. SGT): This article was updated with Twitter’s announcement about Elon Musk’s acquisition plan.
Twitter announced it had agreed to be acquired by Elon Musk for US$54.2 per share, valuing the social media platform at US$44 billion. The price represents a 38% premium to Twitter’s closing stock price on April 1.
Photo credit: Automobile
Musk has secured US$25.5 billion in debt and margin loan financing and is providing around US$21 billion in equity commitments. He will make Twitter a privately held company when the transaction is completed later this year, pending regulator approval.
Earlier this month, Musk said he would buy Twitter for nearly US$43 billion in cash. Before this, the billionaire had acquired a 9.2% stake in the microblogging platform, becoming one of its largest shareholders.
Interestingly, Twitter adopted a “poison pill” defense after Musk made the offer. The move was aimed at preventing him from increasing his stake in the company to over 15%.
See also: Explaining TikTok’s ecommerce bet in Southeast Asia
Editing by Eileen C. Ang
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