On this Monday, April 25, Twitter has confirmed it has reached an agreement with Elon Musk. As a result, the world’s richest man is basically purchasing Twitter for the whopping amount of over $44 billion. As expected and previously teased by Bloomberg, Twitter and Elon Musk have closed the deal. Elon Musk is basically paying the impressive amount of $54,20 for each of Twitter’s shares. Interestingly, the deal does not depend on other Musk’s properties. After the deal concludes, Twitter will become a private company, and Elon Musk will have absolute control over social media’s future.
Elon Musk now has Twitter under his control
To reach this impressive amount, Elon Musk had to raise his efforts. The billionaire ensured nearly $25,5 billion on loans and used $21 billion of its own capital. The two parts will probably close the deal later this year. For now, it needs the proper approval of the company’s shareholders and regulatory bodies. When it comes to the shareholders, worth noting that Elon Musk already stands as the company’s biggest stockholder with nine percent of the shares. To those unaware, Twitter was founded way back in 2006 and has more than 215 million monthly users.
I hope that even my worst critics remain on Twitter, because that is what free speech means
— Elon Musk (@elonmusk) April 25, 2022
As aforementioned, once the deal gets approved, the company will no longer offer its shares on the stock exchange. Elon Musk will have total control to dictate the future of social media from now on. Interestingly, back in the last month, Musk was criticizing the current scene with social media that does not really provide free speech for its users. He is one of the most active voices on Twitter with an impressive amount of over 80 million followers. We only expect this amount to grow now that he is becoming even more popular.
One of the changes coming after Elon Musk’s shares acquisition is the new Edit button. However, we’re pretty sure that more changes are coming. At the moment, the exact future of social media is unclear, but we expect a major overhaul. Worth noting, that this is a whole new area for Musk, after all, his successful companies Tesla and SpaceX are in a completely different segment.
“I want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating spambots, and authenticating all humans.”- Elon Musk
According to the deal details, the stockholders will receive around $54,20 in cash for each share. That basically stands as a 38 percent prize over Twitter’s papers on April 1. Shortly after the announcement, Twitter’s stocks are up by 6%.