Less than two weeks after adopting a poison pill to ward off Musk's hostile bid, the social media company accepted the entrepreneur's offer.
The Board of Directors unanimously accepted Musk's $44 billion buy-out, which will value the company's shares at $54.20. Once the deal is completed, the company will be privately-held.
Since Musk announced on April 4 that he had bought a 9.2% stake in the company, he had seemingly been preparing for a fight. Musk's declaration that he had secured commitments for $46.5 billion in financing made the board warm to the offer.
The proposed transaction will be assessed by the Board with a deliberate focus on value, certainty, and financing.
According to a filing with the Securities and Exchange Commission, Musk personally committed $21 billion in equity financing. He has secured debt financing through Morgan Stanley Senior funding and other firms, including Bank of America.
The analysts warned that rebuffing the offer would be a mistake.
Musk has been outspoken about changes he would like to see at the social media company, with an emphasis on his definition of free speech. The return of former President Donald Trump, who was permanently suspended from the platform after the Capitol riots in January of 2021, has been speculated about.
The bedrock of a functioning democracy is free speech, and the digital town square where matters vital to the future of humanity are debated, said Musk. I look forward to working with the company and the community of users to unlock it.
The CEO of the electric company has said that he would like to have an edit button on the micro-messaging service. He wants the company to make its algorithms available for everyone to inspect, and to show why certain things are promoted. Republican lawmakers have claimed that there is a hidden control on what is said on the platform.
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