Musk initially tried a hostile buyout that got obstructed by the Twitter board. According to Musk, his goal is to make Twitter a headquarters for free speech and freedom.
Many media outlets drew the public’s attention by confirming that the Twitter board of directors received the final purchase offer from tycoon Elon Musk, which got finally accepted.
The agreement arrived after weeks of speculation, a moment in which Musk had confirmed the acquisition of more than 9% of Twitter shares, becoming the company’s largest shareholder.
The purchase happened at $54.30 per share, giving USD 44 billion. Overall, since speculation began about Musk’s acquisition of the social network, Twitter shares have reached a peak registered at more than 5% on Monday.
As highlighted by Bloomberg, with the purchase of Twitter, several investors and personalities from the world of finance approached Musk to show their investment interest in the company.
On the other hand, as expressed by Musk, he will now start transforming the social network, which he has promised to turn, into a bastion where freedom of expression and speech will be the primordial ingredient.
Before confirming the purchase this Monday, April 25, Musk revealed a tweet in which he expected that his worst critics would stay on Twitter since that is what freedom of speech is. He made a comment when the board was still evaluating his offer.
This event has even led to speculation that, with Musk at the helm, it could mean the return of Donald Trump, former president of the United States. He got erased for life from posting on Twitter after the events at the capitol in January of 2021.
From now on, with Twitter turned into a company in the hands of the wealthiest person worldwide, Musk’s next task will be to choose his board of directors, of which there is the expectation that those who make up the current board will retain their positions.
Elon Musk Convinces the Board
The sudden sale, along with the flash approval of the offer by the board, arrived after the commission resorted to a financial tool known as a “poison pill” to prevent Musk from taking over the social network. The idea was to prevent Musk from purchasing more than 15% of the total shares through the stock market by issuing new shares at discounted prices, which would mean the dilution of Musk’s stake.
However, Musk’s offer managed to convince the 11 members of the board of directors, according to the New York Times, who agreed to look at the purchase proposal.
In this case, the confirmation appeared three days before the publication of the company’s income statements, scheduled for this Thursday, April 28, whose event could serve as motivation so that, despite its initial refusal, it got finally approved.
By: Jenson Nuñez
