Twitter accepted Elon Musk’s offer to buy the company for $ 45.5 billion, ending days of controversy between Musk and the company’s board.
In a SEC filing on Friday, Musk set out his investment plans for the deal, including $ 25 billion in debt and $ 22 billion in personal equity. Analysts believe the debt could go up on Twitter up to $ 1 billion a year service costs, or about 20 percent of the company’s annual revenue.
Shortly after Musk announced its acquisition plan, the Twitter board created a measure of “poison pills”, suggesting that it intends to prevent the purchase of Musk. It is unclear what caused the change in the company. New York Times report On Monday, Twitter staffers described the news as divisive, with little information about the ongoing talks.
It is unclear what impact Musk will have on Twitter, or where the changes will begin. When he first announced his 9.2 per cent stake in Twitter, he voted for Twitter users to create an “edit” button, which Twitter was already promoting. He later suggested nixing ads on Twitter Blue, lowering the registration fee, and adding Dogecoin as a payment option.
Musk directly criticized Twitter mediation, describing it as a “free language” and raising concerns about how the forum would mediate for him. “It’s really important that people get the facts and the perspective that they are able to speak freely within the boundaries of the law,” Musk said in an interview with Chris Anderson during TED 2022. it has declined for the most part and we can increase the confidence of Twitter a public place. “
Musk first offered to buy Twitter for $ 54.20 per share on April 13th. The demand followed Musk’s announcement that he had a 9.2 per cent stake, a move that made him the largest Twitter shareholder at the time. At one point Musk was offered a seat on the board of directors but the deal fell through immediately, as the board seat prevented him from buying more than 14.9 percent of Twitter.