Twitter Deal: Microblogging site Twitter has been bought by the world’s richest man Elon Musk for $44 billion. In this way, now Twitter is on its way to become a privately operated company. Twitter’s independent board chairman Brett Taylor called it “the best path forward for shareholders” in a statement.
Important points of this deal
After this deal, different types of discussions are going on. These 10 points are important to understand this whole deal in a nutshell.
1. The transaction unanimously approved by the Twitter Board of Directors is expected to close in 2022. After this deal, the company will now come under Elon Musk’s wholly owned entity for $ 54.20 per share.
2. In his first tweet as soon as the deal was revealed, Musk, who is followed by more than 84 million people, wrote, “Free speech is the cornerstone of a functioning democracy and Twitter is the digital town square where everything from the future of humanity to human rights But there is talk.
3. Elon Musk has said that, “I want to enhance this product with new features. I want to make it better than before.
4. This deal has been done after several rounds of tussle and uncertainty. Reports quoting Parag Aggarwal said that the work for the existing employees of Twitter will continue as before and no one will lose their jobs till the acquisition.
5. Twitter said in its official statement that, Musk “secured $25.5 billion of fully committed debt and margin debt financing. In addition, he also provided an equity commitment of approximately $21.0 billion.”
6. Earlier this month, Musk expressed his desire to buy it. A day later, Twitter adopted a limited-term shareholder rights plan. Such defense moves are normal to avoid hostile takeover.
7. The Rights Plan “will reduce the possibility of all shareholders gaining control of Twitter through open market accumulation without paying a reasonable control premium or providing the Board with sufficient time to make informed decisions and take action.”
8. The board adopted the rights plan following “an unsolicited, non-binding offer to acquire Twitter”.
9. Elon Musk is known for his broad business ambitions. He started with what is popularly known as the dream of colonizing space.
10. Elon Musk wrote on Twitter before the deal was revealed, “I hope even my worst critics stay on Twitter, because that’s what freedom of expression means.”
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