Elon Musk Strikes Deal to Buy Twitter for $44bn
- Musk bags Twitter Inc.
- The deal was sealed at $44bn.
- Criticized Twitters strategy for freedom of speech.
Come Monday , investors in the worlds most influential social media platform would receive $54.2 for each Twitter share they own, the company said soon after Musk procured a 16-year-old social networking platform, that has become a hub for social discourse.
The statement by the company came after Twitter fell into the hands of its most richest investor.
The price is 38% more than the stock’s close on April 1, the last business day before Musk disclosed a significant stake in the company, sparking a share rally.
The all-cash deal is expected to be completed later this year. Musk secured $25.5 billion of debt and margin loan financing and will provide about $21 billion in equity to fund the deal, according to the statement.
Musk, one of Twitter’s most prolific users with more than 83 million followers, began amassing a stake of about 9% in January. By March, he had ramped up his criticism of Twitter, alleging that the company’s algorithms are biased and feeds cluttered with automated junk posts. He also suggested Twitter’s user growth was inflated by bots. After rejecting an invitation to join the company’s board, on April 14 he offered to take Twitter private, saying he’d make the platform a bastion of free speech and dropping other hints about the changes he’d make as owner.