Twitter warms up to Elon Musk’s takeover bid after all
The social network today announced it has entered into a definitive agreement to be acquired
Ten days ago, the deal seemed improbable yet today Twitter announced in a press release that it has “entered into a definitive agreement to be acquired by an entity wholly owned by Elon Musk, for $54.20 per share in cash in a transaction valued at approximately $44 billion”. The offer was simply too good to pass up.
Musk is taking risks: the purchase price set at a 38% premium versus Twitter’s closing stock price on April 1, 2022. According to Reuters, the financial montage includes a $12.5B margin loan, secured against Tesla stock, as well as $21B of Musk’s own cash.
It’s important to note that the deal (while it has been unanimously approved by the Twitter Board of Directors, and expected to close in 2022) is subject to stockholders’ and regulatory approvals.
Money talks… and Musk certainly has lots of it. It’s hard to predict if this acquisition is worth all that “guap”. But as I noted in an earlier post, the richest man in the world’s ability to influence on the platform is paramount…
This story was first published on The PhilaVerse (my Substack newsletter).