Elon Musk clinches $44bn deal to buy Twitter – Newspaper

NEW YORK: Elon Musk closed a $44 billion deal to acquire Twitter Inc on Monday in a deal that will transform the world’s richest person in control of a social media platform of millions of users and global leaders.

An important moment for the 16-year-old company that has emerged as one of the world’s most influential plazas and is now facing a series of challenges.

Discussions about the deal, which seemed uncertain last week, accelerated over the weekend after Musk persuaded Twitter shareholders with financing details for his proposal.

Under pressure, Twitter began negotiations with Musk to acquire the company at the proposed $54.20 per share.

“Freedom of expression is the foundation upon which democracy works, and Twitter is a digital town square where issues important to the future of humanity are discussed,” Musk said in a statement.

The stock has risen about 6% since the news. The deal comes at a nearly 40% premium to the closing price the day before Musk announced it had bought more than 9% stake. Still, the offer is below the $70 Twitter traded last year.

The transaction has been approved by the Board of Directors and is currently subject to a shareholder vote.

In a prepared statement, the company said Musk had secured $25.5 billion in debt and margin loan financing and was offering $21 billion in equity commitments.

It was not immediately known what the dissolution fee would be or who would run the new company.

Elon Musk, 50, who is also CEO of rocket developer SpaceX, said on Twitter that he wants to fight trolls and has proposed changes to the Twitter Blue premium subscription service, including price cuts and ad bans.

The billionaire, an avid cryptocurrency advocate, even proposed adding Dogecoin as a payment option on Twitter.

By the time Musk went public on Twitter in April, the company’s stock had fallen about 10% since Parag Agrawal took over as CEO from founder Jack Dorsey in late November.

of great importance

Twitter’s immense importance as an advocate for politicians, political dissidents and activists is on a relatively small scale.

It’s only about a tenth the size of a much larger social media platform like Meta Platforms Inc’s Facebook, but is known to have helped the Arab Spring Uprising and is accused of playing a role in the January 6, 2021 raid on the United States. . Capitol.

After Twitter was banned for fears of incitement to violence after an attack on the Capitol last year by supporters of former President Donald Trump, he tweeted: “Many people will be very dissatisfied with West Coast’s cutting-edge technology effectively arbitrating freedom of speech. .”

On Monday, Republicans cheered when they heard news that Musk might take over Twitter.

Posted at Serb on April 26, 2022