Elon Musk Buys Twitter for US$44 Billion
Tesla’s CEO Elon Musk penned a definitive agreement to acquire Twitter Inc. at US$54.20 per share, valuing the social media platform at US$44 billion. The social media platform considered Musk’s offer following pressure from its shareholders.
“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,” mentioned Bret Taylor, Twitter’s Independent Board Chair, in the official press release.
Musk insisted that “free speech” is key to the platform’s future and addressed intended changes and improvements. “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spambots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”
🚀💫♥️ Yesss!!! ♥️💫🚀 pic.twitter.com/0T9HzUHuh6— Elon Musk (@elonmusk) April 25, 2022
The transaction was unanimously approved by the Twitter Board of Directors and is expected to close in 2022. The final decision is subject to the approval of Twitter’s stockholders, as reported by Tech Crunch. After the news, its shares were up by about 6 percent. However, some have expressed concerns that under Musk’s leadership the platform would loosen its controls on political speech, which led to the suspension of the New York Post and the banning of former US President Donald Trump, according to Reuters.
At 2:11 p.m., April 25, 2022, New York Stock Exchange authorities suspended the operation of Twitter shares. The Mexican Stock Exchange (BMV) followed suit as Twitter’s shares can be bought through the International Quotation System (SIC). “BMV informs that it was aware that the securities representing the capital of the foreign issuer called: TWITTER were suspended on the NYSE because the issuer has pending clarification of relevant information for the market (...) in order to prevent disorderly conditions occurring in the market,” reports the Mexican Stock Exchange. In Mexico, 28.03 percent of mobile phone users between 18-24 years old reported using Twitter in 2021, according to Statista.