Mr Elon Musk has secured $25.5 billion of fully committed debt and margin loan financing and is providing an approximately $21.0 billion equity commitment. There are no financing conditions to the closing of the transaction. Twitter plans to release its first quarter fiscal year 2022 results before market open on April 28, 2022. In light of the pending transaction announced today, Twitter said it will not hold a corresponding conference call.
Twitter has agreed a definitive deal to sell itself to Elon Musk, the world’s richest man, at approximately $44 billion.
It is the biggest social media acquisition, surpassing the $26.2 billion buyout of Linkedin by Microsoft.
Mr Musk made an unsolicited bid for the giant social media company, offering to buy its shares for $54.20 a unit — reasonably higher than the $40 plus it has been selling. After initially rejecting the offer, it became clear Monday Twitter was seriously considering the bid and both sides were close to a deal.
In a statement Monday evening, Mr Musk announced that Twitter Inc. had entered into a definitive agreement to be acquired by an entity wholly owned by Mr 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.
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.
