In a move that has the internet reeling, Elon Musk has taken over Twitter. Well, in paper. The deal might take close to 6 months to go through.
The Board of Directors at Twitter has voted unanimously to proceed with the sale of the social media platform to Elon Musk, according to an announcement made on Monday.
This comes after nearly 21 days of speculation about whether the deal would go through. Musk expressed interest in buying the popular app, and analysts were not optimistic about the deal going through
The board's openness is a new development in a saga that has been unfolding for almost a month on Twitter.
On April 4th, Twitter announced that Elon Musk was their largest individual shareholder. He had acquired 9.2% of the company's shares at a total cost of $2.9 billion.
Twitter announced on April 5 that Tesla CEO Elon Musk will be joining the company's Board of Directors. According to Twitter CEO Parag Agrawal in a tweet: "I'm excited to share that we're appointing @elonmusk to our board! Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board."
10 days later Twitter announced Elon Musk is no longer joining the Board of Directors at Twitter.
When Musk first announced the idea of acquiring Twitter, many were sceptical. It seemed like a move out of the left field for the billionaire and his company, which does not have a history of making acquisitions and has little in common with the social media platform.
But then things became really interesting when Musk made an offer to buy Twitter outright. He made an offer on April 14. A day after the board tired to stop the deal from going through.
The Twitter board attempted to “stop” Elon Musk from purchasing the social network on April 15 by introducing a limited-duration shareholder rights plan intended to prevent him from buying it.
On April 25, Elon Musk is celebrating because the Board agreed to his terms.
Twitter accepted Elon Musk's offer to buy the company at a value of just over $44 billion.
“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,” Twitter said in a press release.
Elon Musk transitioned from being the biggest shareholder with 9.2% stake in Twitter to becoming the owner of the company.
When Twitter went public, Musk bought more shares than anyone else and became the single largest individual shareholder.
Elon Musk's attempt to buy Twitter for $43 billion was a shock to many. I personally didn't take it seriously. Musk is known for his flamboyant stunts. But this is happening for real.
A filing shows that if Elon Musk terminates his $44 billion cash deal to buy Twitter, he will be liable to pay the company a fee of $1 billion.
Musk has become an increasingly influential figure on social media, with his tweets often having a significant influence on financial markets. His involvement with Twitter could give it a boost, but also raise questions about whether he would use its platform to promote his own interests or those of Tesla.
A few days ago, he raised an additional 7 billion dollars to finance the Twitter deal.
Among the new investors are Oracle founder Larry Ellison, the popular venture capital firm Sequoia Capital, and cryptocurrency giant, Binance