Twitter’s board of directors has announced that it agreed to sell the company to Tesla CEO Elon Musk, culminating the world’s richest person’s quest to acquire his favorite social media platform and make it private.
Musk and Twitter’s board of directors was close to an agreement after a meeting on Sunday, according to the Wall Street Journal. Musk, who already owned about 9% of Twitter shares, said he secured $46.5 billion to complete the purchase.
The reported deal follows Musk’s April 14 offer to buy Twitter for $54.20 per share, or about $44 billion, to take the company private.
“My offer is my best and final offer and if not accepted, I will have to reconsider my position as a shareholder,” Musk said in a Securities and Exchange Commission filing. “Twitter has extraordinary potential. I will unlock it.
Prior to the deal, Twitter shares were trading well below Musk’s offer price, suggesting investors had little confidence a deal would be struck.
At a TED event in Vancouver later the day Musk made his offer, the billionaire acknowledged uncertainty over a deal, but said he was suing Twitter because he thinks “that It is very important that there is an inclusive arena for freedom of expression. ”
Musk’s interest sparked unease within the company. The day after Musk’s offer, Twitter’s board rejected it and said it would adopt a “poison pill” anti-takeover defense.
This “does not preclude the board from engaging with parties or accepting an acquisition proposal if it believes it is in the best interests of Twitter and its shareholders,” the company added. company in a press release.
Musk in the past has troubled himself on Twitter. In 2018, he tweeted that he had enough money to take Tesla private, but a court later ruled his claim was false and misleading.
At the Vancouver TED event, Musk revisited the controversy.
“I was forced to concede to the SEC illegally. Those bastards,” Musk said of regulators, according to Reuters.
Following Musk’s tweets in 2018, Tesla shareholders asked U.S. District Judge Edward Chen to halt the CEO’s “public campaign to present a contradictory and false narrative.”
The SEC charged Musk with securities fraud for those tweets. Musk settled for $40 million, half of which was paid by Tesla.
As part of the settlement, Musk agreed to step down as Tesla’s chairman for three years and promised he would allow the company to preview statements about the company.
This is a developing story. Please check for updates.