California, USA (CU)_ Twitter has accepted Elon Musk’s $44 billion acquisition proposal, and the transaction has officially been completed. Even though the transaction is expected to conclude this year, the shareholders as well as authorities in the United States and other countries where Twitter operates must still approve the transaction.
The board of directors of Twitter collectively accepted Musk’s offer and is also urging the shareholders to agree for the same. Following Musk’s Twitter takeover, Twitter will become a privately owned corporation once Elon Musk completes the $44 billion transaction, one of the largest acquisitions in history.
According to a tweet from Musk, free speech is the core of a functional democracy and that Twitter serves as the digital town square for debating issues critical to humanity’s future. Musk shared his future plans with Twitter. He said, “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 spam bots, and authenticating all humans”.
Musk disclosed his buying plans earlier this month, and Twitter approved a limited duration shareholder rights scheme. The Rights Plan will significantly decrease the chance of any organization, person, or group acquiring control of Twitter through open market accumulation without paying an adequate control premium to all shareholders. After much uncertainty, the agreement eventually came to fruition. According to Twitter, business will continue as usual for the staff.
Musk has pledged $25.5 billion in fully committed debt and margin loan funding and will contribute $21.0 billion in equity. After an unrequested and non-binding bid to purchase Twitter, the board enacted the Rights Plan. According to an earlier post from Musk, “I hope that even my worst critics remain on Twitter, because that is what free speech means”. Musk is well-known for his numerous commercial endeavors and has also embarked on his journey to colonize space.
