NOTE: Twitter’s stock ticker hasn’t actually changed to $ELON, though that would be funny. That’s just a joke, treat it as such.
In an announcement that many of us thought we’d never get to say, it’s my joy to announce that Elon Musk, the famed CEO, innovator, and Twitter troll, just bought Twitter. As Paul Bemer said of Saddam in 2003, “ladies and gentlemen, we got him.”
Yes, that’s right; for the titanic, so large it’s hard to comprehend sum of $44 billion, Elon Musk just bought Twitter, paying $54.20-per-share in a deal that was reached sometime on Monday, April 25th. So not only was Elon able to buy the social media company, but he was able to do while also working in the same weed joke ($4.20) that he was able to work into his (in)famous “funding secured” tweet about taking Tesla private.
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Regardless of the joke involved, it does appear that deal has gone through, as Reuters reported on Monday afternoon that:
Elon Musk clinched a deal to buy Twitter Inc (TWTR.N) for $44 billion on Monday in a transaction that will shift control of the social media platform populated by millions of users and global leaders to the world’s richest person.
Discussions over the deal, which last week appeared uncertain, accelerated over the weekend after Musk wooed Twitter shareholders with financing details of his offer.
Yet better, the deal Elon struck will make it hard, or at least financially painful for it to break off the deal and sell to another buyer, as it was unable to secure a so-called “go-shop” provision for the deal, a provision that would, as the name implies, let it solicit higher bids to try and nudge out Musk and sell to someone else.
It did, however, reportedly secure a provision that will enable it to accept a higher offer if it receives one without soliciting it so long as it pays Elon a fee in return. Breitbart, reporting on that provision, noted that:
Nonetheless, Twitter is still allowed to accept an offer from another party by paying Musk a break-up fee, added the sources, who requested anonymity, given that the matter is confidential.
Up until this morning, it appeared that a deal might not be struck, as Elon has made jokes both about going around the board with a tender offer and about giving up on the project entirely, both of which have raised blood pressures on the Twittersphere and likely in board rooms around the country.
But, then, this morning news broke that Elon and Twitter were close to reaching a deal, with one likely to be announced at some point on Monday. Now, it appears that Elon has succeeded!
What changes Elon will bring to the platform are unclear, assuming the deal goes through without another buyer swiping the social media giant from Elon, but cries on Twitter for him to bring back Trump are growing in intensity.
The company also released a press statement on the matter announcing the terms of the deal, with the chairman of the Board saying “The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing. The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.”
Musk, discussing the purchase, said “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debatedI also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”