Featured Image Credit: Alamy
Topics: Twitter, Elon Musk, World News, US News, Social Media
Daisy Phillipson
Topics: Twitter, Elon Musk, World News, US News, Social Media
Twitter has announced that it has entered into an agreement that will see Elon Musk buy the company.
Musk's decision to buy Twitter arrived shortly after he became the largest shareholder, having bought a 9.2 percent stake in the company.
However, the SpaceX chief soon set his sights on acquiring the whole thing, sharing an initial offer with his followers, which stood at $41.39 billion (£31bn). This equated to $54.20 (£41) per share, with many fans noticing he’d dropped a ‘420’ joke in there.
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In response to the offer, Twitter released a statement on 14 April confirming it had received the proposal, adding: “The Twitter Board of Directors will carefully review the proposal to determine the course of action that it believes is in the best interest of the Company and all Twitter stockholders.”
Since then, Musk revealed he'd increased his offer by securing $46.5 billion (£35.6bn) in financing, $21 billion (£16.5bn) of which is said to be his own money, with a further $12.5 billion (£9.81bn) coming from a margin loan secured against his shares in Tesla, reports The Guardian.
In the statement announcing the agreement, Musk said: "Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated.
"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.
"Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it."
Talks of a potential deal going ahead began circling online before The New York Times reported that Twitter’s board had been negotiating with Musk into the early hours of this morning (April 25).
In an update, Bret Taylor, Twitter's Independent Board Chair, said: "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."
Financial reports noted that shares of Twitter rose 3 percent this morning, but what this means in the long run is yet to be seen.
But it seems the 50-year-old businessman is confident in his abilities to run the app, stating in a previous letter to Twitter chairman Bret Taylor: "Since making my investment I now realise the company will neither thrive nor serve this societal imperative in its current form.
"Twitter needs to be transformed as a private company. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder."
The Tesla boss has also made a few promises to his followers, although if his past Twitter activity is anything to go by, we can take what he says with a pinch of salt.
In a post shared earlier this month, he said: “If our twitter bid succeeds, we will defeat the spam bots or die trying!”
Musk also recently spoke to TED founder Chris Anderson about his desire to buy Twitter and what he would like to do with it, saying: "I think it's very important that there will be an inclusive arena for free speech."
"Twitter has become kind of the de facto town square. It's really important that people have the reality and the perception that they're able to speak freely, within the bounds of the law."
He continued: "I think it's very important that there will be an inclusive arena for free speech."
"Twitter has become kind of the de facto town square. It's really important that people have the reality and the perception that they're able to speak freely, within the bounds of the law."
After news of the agreement was shared by Twitter, Musk reiterated that he wanted to make the platform 'better than ever' with new features.
He added: "Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it."
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