Key facts:
Musk initially attempted a hostile buyout that was stopped by the Twitter board.
According to Musk, his goal is to turn Twitter into a bastion of free speech.
On Monday morning, different media outlets drew the public’s attention by confirming that the Twitter board of directors received the final purchase offer from tycoon Elon Musk, which was finally accepted.
The agreement comes after weeks of speculation, a period in which Musk had confirmed the purchase of more than 9% of Twitter shares, becoming the company’s largest shareholder.
The purchase was executed at $54.30 per share, giving a total of USD 44 billion. Overall, since speculation began about Musk’s purchase of the social network, Twitter shares have risen more than 5% on Monday.
According to informs Bloomberg, with the purchase of Twitter, several investors and personalities from the world of finance approached Musk to show your investment interest in the company.
On the other hand, as reported by Musk himself, he will now begin his process of transforming the social network, in which he has promised to turn it into a bastion of freedom of expression.
Freedom of expression is the foundation of a functioning democracy, and Twitter is the city’s digital plaza where vital issues for the future of humanity are debated.
Elon Musk.
In relation to this, before the confirmation of the purchase this Monday, April 25, Musk published a tweet in which he hoped that his “worst critics” they will stay on Twitter, since that is what freedom of opinion is about. A comment he made at a time when the board was still evaluating his offer.
This event has even led to speculation that, with Musk at the helm, could mean the return of Donald Trumpformer president of the United States, who was vetoed for life to post on Twitter after the events at the capitol in January 2021.
From now on, with Twitter turned into a company in the hands of the richest man in the world, Musk’s next task will be to elect his board of directors, of which there is the expectation that those who make up the current board will retain their positions.
Elon Musk managed to convince the board
The sudden sale, along with the flash approval of the offer by the board, comes after the board itself resorted to a financial instrument known as a ‘poison pill’, to prevent Musk will take over the social network. The idea was to prevent Musk from acquiring more than 15% of total shares through the stock marketby issuing new shares to the market at discounted prices, which would mean the dilution of Musk’s stake.
However, Musk’s offer was able to convince the 11 members of the board of directors, according to it states the New York Times, who accepted the review of the purchase proposal.
In this case, the confirmation was given 3 days before the publication of the company’s income statements, scheduled for this Thursday, April 28, whose event could serve as motivation so that, despite its initial refusal, it was finally approved. .