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Monday, April 25, 2022, was a very good day for billionaire Elon Musk.
The Wall Street Journal reported Monday morning that the deal between Musk and Twitter’s Board of Directors to purchase the platform for $44 billion was expected by the end of the trading day if not earlier.
The two sides worked through the night to hash out a deal that would be valued at $54.20 a share, or $44 billion, the people said. Assuming there isn’t a last-minute snag, the deal is expected to be announced after the market closes Monday, if not sooner.
It’s not clear why the total value of the deal has increased slightly from prior expectations, but it could be related to an updated share count.
Twitter had been expected to rebuff the offer, which Mr. Musk made April 14 without saying how he would pay for it, and put in place a so-called poison pill to block him from increasing his stake. But after the Tesla Inc. chief disclosed that he has $46.5 billion in financing and the stock market swooned, Twitter changed its posture and opened the door to negotiations.
The Wall Street Journal reported Sunday that Twitter had warmed up to Mr. Musk’s proposal and could reach a deal this week.
Twitter shares were ahead about 6% midday Monday.
Source: Wall Street Journal
Then, just after lunch, Musk was celebrating the successful splashdown of the first commercial crew just off the coast of the Free State of Florida.
Splashdown of Dragon confirmed pic.twitter.com/m0C7GjwhYh
— SpaceX (@SpaceX) April 25, 2022
Watch Dragon and the Ax-1 astronauts depart the @space_station and return to Earth → https://t.co/N3MHSxCS0k https://t.co/JJxgD3B1rc
— SpaceX (@SpaceX) April 25, 2022
Later in the afternoon, trading of Twitter shares was suspended as the deal to purchase Twitter went through.
Twitter, Inc. (NYSE: TWTR) today announced 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. Upon completion of the transaction, Twitter will become a privately held company.
Under the terms of the agreement, Twitter stockholders will receive $54.20 in cash for each share of Twitter common stock that they own upon closing of the proposed transaction. The purchase price represents a 38% premium to Twitter’s closing stock price on April 1, 2022, which was the last trading day before Mr. Musk disclosed his approximately 9% stake in Twitter.
Source: PR Newswire
CBS News reports:
Twitter has agreed to be acquired by Elon Musk in a deal that values the company at $44 billion, the board announced Monday afternoon.
“The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders,” Bret Taylor the company’s independent board chair, said in a statement.
Musk, the CEO of Tesla and SpaceX, reiterated his plans to remake Twitter as a forum dedicated to promoting free speech.
Source: CBS News
What does this mean? Certainly a shake-up at Twitter that has been on the front line in suppressing right-wing speech.
New York Times economics reporter Talmon Joseph Smith tweeted out that Twitter employees are going nuts behind the scenes.
Its “absolutely insane” @ Twitter right now in the virtual valves of private slack rooms & employee group texts, according to an internal source. Their take/breakdown just now:
“I feel like im going to throw up..I rly don’t wanna work for a company that is owned by Elon Musk”…1/— talmon joseph smith (@talmonsmith) April 25, 2022
The employee continued re Elon: 3/“ I feel like he’s this petulant little boy and that he’s doing this to troll…he doesn’t know anything about our policies and what we do…his statement about our algo was fucking insane…
“Were just gonna let everyone run amok?…nobody knows”— talmon joseph smith (@talmonsmith) April 25, 2022
Obama’s former Secretary of Labor had the perfect flip-flop on the “tWiTtEr iS a PrIvAtE cOmPaNy”…
It’s perfect. pic.twitter.com/XgKibQEmOu
— Drew Holden (@DrewHolden360) April 25, 2022
“Where else would consumers go” indeed.
Bobby’s finding out that it’s not so much fun when the censorious left he cheers on isn’t in charge of regulation speech on Twitter anymore.
Besides, it’s all ginned-up outrage…
Elon Musk is buying Twitter and everyone freaking out drives a Tesla. There’s never been a dumber time to be alive.
— Jimmy Failla (@jimmyfailla) April 25, 2022
While some on the left fear retaliation or suggest that they’ll leave the platform, Musk is committed to free speech and hopes to make Twitter a platform for everyone.
I hope that even my worst critics remain on Twitter, because that is what free speech means
— Elon Musk (@elonmusk) April 25, 2022
Musk’s celebratory tweet after the deal was announced included a screenshot of his statement that free speech is the bedrock of democracy.
??♥️ Yesss!!! ♥️?? pic.twitter.com/0T9HzUHuh6
— Elon Musk (@elonmusk) April 25, 2022
Former Twitter CEO Jack Dorsey has said that Twitter’s board has “consistently been the dysfunction of the company.”
Elon Musk And Jack Dorsey BOTH Slam Twitter Board After Adopting ‘Poison Pill’
Elon Musk has a vision for Twitter’s potential and is a regular user of the platform. It’ll be interesting to see what changes are made.
But don’t get your hopes up of seeing a certain former President that was banned back on the platform, he’s said that he won’t return even if his account is reinstated.
There’s only one way to respond to that… Sad.
