Daily Management Review

Elon Musk buys Twitter for $44B


Twitter has announced that Elon Musk, the founder of SpaceX and Tesla, will purchase the social media platform for $44 billion.

Yuri Samoilov via flickr
Yuri Samoilov via flickr
In a statement, Twitter said, "Twitter, Inc. today announced that it has entered into a definitive agreement to be bought by a company entirely owned by Elon Musk for $54.2 per share, the deal valued at about $44 billion."

Meanwhile, the acquisition price is a 38 percent premium to the exchanges' closing price on April 1, 2022, the final day of trade before Musk declared his interest in Twitter.

Twitter will become a private corporation after the acquisition is done, according to the press release. After the relevant clearances are secured, the acquisition is expected to be finalized this year.

In US trade, Twitter shares are up 5.75 percent to $51.74 per share.

Musk announced on April 4 that he owns 9.2 percent of Twitter and on April 14 that he was willing to buy all of Twitter's shares at $54.2 per share. His offer would be considered the next day, according to Twitter. A few hours later, Saudi Prince Al Waleed bin Talal, who owns shares in the company, rejected Musk's offer, saying it was out of line with the company's true value.

source: cnn.com