The board of the company accepted an offer from Musk to take it private.
The stock was halted for the news but was up more than six percent when it resumed trading.
Musk said in a statement included in the press release that free speech is the bedrock of a functioning democracy and that the digital town square is where matters vital to the future of humanity are debated. I look forward to working with the company and the community of users to unlock it.
The full announcement can be found here.
In a transaction valued at approximately $44 billion, an entity wholly owned by Musk has entered into a definitive agreement to acquire the shares of TWTR that it does not already own. The company will become a privately held company once the transaction is complete.
Upon closing of the proposed transaction, stockholders will receive a cash payment of $54.20 for each share of common stock they own. The last trading day before Mr. Musk disclosed his 9% stake in the company was April 1, 2022.
The independent board chair said that the board conducted a thoughtful and comprehensive process to assess the proposal with a deliberate focus on value, certainty and financing. The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for the company's stockholders.
The CEO of the company said that it has a purpose and relevance that impacts the entire world. Our teams are inspired by the work that has never been more important.
Mr. Musk said that free speech is the bedrock of a functioning democracy and that the digital town square is where matters vital to the future of humanity are debated. I look forward to working with the company and the community of users to unlock it.
Financing and transaction terms.
The transaction is expected to close in 2022, subject to the approval of the stockholders, the receipt of applicable regulatory approvals, and the satisfaction of other customary closing conditions.
Mr. Musk has secured $25.5 billion of debt and margin loan financing and is providing $21.0 billion of equity. There are no conditions for financing the transaction.
The Current Report on Form 8-K will be filed in connection with the transaction, and contains further information about the terms and conditions contained in the definitive transaction agreement.
The first quarter of 2022.
The first quarter results of the company will be released before the market opens on April 28, 2022. In light of the pending transaction, the conference call will not be held.
Advisors.
Goldman Sachs, J.P. Morgan, and Allen & Co. are some of the financial advisors that are helping to advise the company. Morgan Stanley is working with Mr. Musk. BofA Securities is also acting as a financial advisor. Skadden, Arps, Slate, Meagher & Flom is a law firm.
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Musk decided not to join the board of directors.
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