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Elon Musk has officially bought Twitter for $44 billion

Business | Finance | Market

Elon Musk has officially bought Twitter for $44 billion

announced last week his bid to fully acquire and delist it from the stock market, and at first it appeared that the company would politely (or not so politely) decline. However, it appears that it did some more thinking after a few days and today officially announced that it is accepting Musk’s bid.

According to the company’s press release, this means that has “entered into a definitive agreement to be acquired by an entity wholly owned by .” The cash price is $54.20 per share (which means not shares in SEC-speak, and not actual cash, by the way). As a result, the total transaction value is approximately $44 billion. will become a privately held company and its shares will no longer be traded on any stock exchange once the transaction is completed (which could take months due to all of the regulatory scrutiny it is bound to face).

After all, this was Musk’s original plan, and it appears to be working out quite well for him. The price he’s paying per stock represents a 38% premium over Twitter’s closing stock price when its shares were last traded.

“Free speech is the bedrock of a functioning democracy, and is the digital town square where critical issues affecting humanity’s future are debated,” Musk said. “I also want to make Twitter better than ever by adding new features, opening up the algorithms to increase trust, defeating spam bots, and authenticating all humans. Twitter has enormous potential, and I am excited to work with the company and the user community to realize it “, he went on.

Musk has secured $25.5 billion in “fully committed debt and margin loan financing,” as well as about $21 billion in his own equity, to fund the purchase.

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