Elon Musk has succeeded in buying Twitter Inc (NYSE: TWTR).
The social media and microblogging company confirmed just moments ago that its board, after a comprehensive review, has unanimously approved the billionaire’s proposal.
Twitter to turn into a private company
As planned, the $44 billion cash deal will turn Twitter into a private company. The transaction is yet to secure shareholder approval, for whom, it translates to $54.20 a share – a more than 10% premium on the previous close.
On top of that, it must win a green signal from the regulator and meet other customary closing conditions. In the press release announcing the agreement, Musk reiterated that Twitter had enormous potential, which he intends to unlock.
“Free speech is the bedrock of a functioning democracy. I also want to make Twitter better than ever by enhancing the products with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans.”
Former SEC Chairman Harvey Pitt’s remarks
Details on breakup fee are yet to be disclosed. Explaining the potential regulatory delays that could hit Elon Musk in closing this deal, former SEC Chairman Harvey Pitt said on CNBC’s “Closing Bell”:
Investors may have been misled when Musk filed forms for a passive investment, when in fact, he intended all along to be quite aggressive. So, he’s probably subject to an investigation, which could go on for quite a long time, and raise issues that we haven’t heard about yet.
He, however, confirmed that such developments were unlikely to block the deal altogether. Twitter is scheduled to report its quarterly results this Thursday.
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